MicroStrategy, now operating as Strategy, may be positioned to resume Bitcoin purchases after a 10-week buying halt. CEO Michael Saylor's recent "We're back" post has prompted market analysis of the company's financial position.
The company last purchased Bitcoin on June 22, acquiring 520 BTC at $67,068. Since then, it has sold Bitcoin four times and made no new purchases, instead accumulating dollars throughout August.
Three Financial Shifts
Reduced Leverage. Strategy holds approximately $6.69 billion in cash against $6.71 billion in convertible note debt, bringing net leverage to 0.1%. Throughout the summer, debt exceeded cash, creating concern among traders about forced selling. This gap has now closed, and MSTR stock rallied 12% when the figures aligned.
Cash Reserve Growth. The company built its dollar reserve deliberately, raising $3.28 billion in fresh capital in August. Its dividend reserve grew from $3.75 billion in July to $5.10 billion, removing pressure on liquidity.
Preferred Share Recovery. STRC preferred shares, which pay a 12% dividend, closed at $97.33 on August 28, approaching their par value of $100. They fell as low as $71.25 in the previous 12 months. Trading below par costs the company money through buyback obligations. Strategy sold Bitcoin in August to support STRC purchases, but the drain lessens as the shares approach par value.
Uncertain Timeline
Saylor's posts are not regulatory filings. MicroStrategy's Bitcoin purchases appear in weekly reports, with the next update expected August 31. Whether the company has already resumed buying remains unclear, as past statements of intent have not always preceded immediate action. Bitcoin was trading near $79,183 as of publication, slightly above MicroStrategy's average acquisition cost of $75,388 per coin.
