Strategy (MSTR) has not purchased any bitcoin since June 22, when it acquired just 520 BTC for approximately $35 million. Since then, the company has shifted its immediate focus from bitcoin accumulation to strengthening its liquidity position.
In the week ending July 5, Strategy sold 3,588 BTC in two transactions. He sold 1,363 BTC for around $80.8 million on June 30, followed by another 2,225 BTC for $135.2 million. The sales generated approximately $216 million and reduced Strategy’s holdings to 843,775 BTC.
The company said the proceeds would help fund distributions on its preferred shares and replenish the portion of its U.S. dollar reserve used to make those payments. The reserve stood at approximately $2.55 billion after sales.
On Monday, Strategy increased its US dollar reserve to around $3 billion. Based on annualized preferred stock dividends and debt interest of approximately $1.76 billion, the reserve now provides approximately 20.4 months of coverage.
However, if Bitcoin were to fall further and reach new lows, the $3 billion reserve may prove insufficient, which could force Strategy to raise additional funds or sell more Bitcoin, which could put additional pressure on STRC and MSTR.
