Strategy Holds 840,447 BTC As Saylor Teases A New Buy

Strategy reportedly acquired bitcoin for the first time since June 22 according to Michael Saylor’s statements. The company president broadcast a brief message as BTC was close to 79,000 dollars. No acquisition, amount, or average price has yet been published. This announcement follows four consecutive sales that reduced Strategy’s reserves by 6916 BTC since their last peak.

In Brief

• Michael Saylor suggests a return of Strategy to buying bitcoin after about ten weeks pause.
• No new BTC acquisition has yet been officially confirmed by the company.
• Strategy currently holds 840,447 BTC after four consecutive sales totaling 6916 BTC.
• The company has 6.69 billion dollars in cash available for various operations, including bitcoin purchases.
• Strategy’s reserves are worth nearly 66.4 billion dollars with bitcoin near 79,000 dollars.

Two words rekindle speculations about a purchase

An image of the purchase tracking table of Strategy was posted on social network X on August 30 by Michael Saylor followed by the message: “we are back”. This statement is interpreted as an indicator of a new BTC acquisition.

However, the wording does not mean official confirmation. The president of Strategy did not disclose either the number of bitcoins involved, the amount spent, or the period of the potential transaction. Only the publication of a document by the company will confirm this purchase.

The essential figures from Strategy’s ledger allow tracking chronologically this acquisition pause period :

• The last purchase was on June 22 and concerned 520 BTC ;
• Strategy spent about 35 million dollars ;
• The company then sold 6916 BTC in four operations ;
• Its reserves currently amount to 840,447 BTC.

Following the June 22 acquisition, Strategy held 847,363 BTC. It sold 1363 BTC on June 30, then 2225 BTC on July 6. Two other sales of 1638 and 1690 BTC occurred on August 3 and 10.

A new purchase would thus symbolize a change of course after about ten weeks without acquisition. It would not necessarily indicate that Strategy permanently abandons sales. Recent transactions reveal that the company now uses its bitcoins as an active part of its balance sheet management.

Strategy has 6.69 billion dollars in cash

The company has the resources to finance a new purchase. For example, during the week ended August 23, it raised nearly 2 billion dollars through the sale of 18.26 million MSTR shares.

Strategy then held 5.1 billion dollars in its reserve dedicated to the payment of dividends and interests. It had also placed 1.59 billion dollars in a new more flexible reserve called “USD Cash”. Its overall liquidity thus approached 6.69 billion dollars.

This sum will not be immediately allocated to bitcoin. Strategy may use this reserve to buy BTC, reacquire its own shares, repay convertible bonds, or consolidate its dollar reserve.

Michael Saylor’s company primarily repurchased 136.4 million dollars of STRC preferred shares during the week of August 23. It aims to bring their price closer to the nominal value of 100 dollars. This transaction automatically competes with BTC acquisitions for the use of available cash.

However, Strategy has reduced some of its financial risk. Its 6.69 billion dollar assets in dollars almost cover its 6.75 billion convertible debts. Its main reserve thus allows financing about four years of dividends on preferred shares.

Strategy’s reserves are worth more than their acquisition cost

Its holdings are set at 840,447 BTC in the official Strategy ledger. The company bought them for nearly 63.36 billion dollars, at an average price of 75,385 dollars per bitcoin.

With a price near 79,000 dollars, these reserves were worth nearly 66.4 billion dollars. Their market value thus exceeded their acquisition cost by almost 3 billion dollars. This gap remains sensitive to BTC fluctuations and does not constitute realized profit.

Since its Friday low when Saylor released his message, bitcoin has rebounded more than 2.5%. It had thus recovered part of the losses triggered by the restrictive speech of Federal Reserve chairman Kevin Warsh at Jackson Hole.

This rebound does not prove that Strategy contributed to the movement. Indeed, Saylor’s statement appeared after the recovery and shows no execution date. The company’s next announcement will need to indicate whether an acquisition really took place, as well as its impact on the 840,447 BTC currently held.