Strategy Buys Bitcoin, Pads Cash Reserves Following Biggest Weekly Stock Drop Since 2022

Strategy’s stockpile was $10.7 billion underwater as of Monday morning after Bitcoin hit its lowest price since October 2024.s

In brief

• Strategy shares pared losses after it purchased 1,550 Bitcoin for $101 million, boosting its total holdings to 845,256 BTC.
• The company grew its cash position back to $1 billion after depleting most of that stockpile to repurchase debt weeks ago.
• The move follows the company’s first Bitcoin sale in years, which triggered its worst weekly performance since November 2022.

Strategy said Monday that it bought 1,550 Bitcoin for $101 million, a return to business as usual after a liquidation triggered the firm’s worst weekly performance since November 2022.

The Tysons Corner, Virginia-based firm signaled in an SEC filing that it now owns 845,256 Bitcoin. With the digital asset changing hands around $63,000, a 1.4% increase over the past day, Strategy’s stockpile was worth roughly $53.3 billion, according to CoinGecko.

The Bitcoin-buying firm’s shares rose 3.4% to above $124 following Monday’s opening bell, according to Yahoo Finance. Last week, shares tumbled 24%, following the company’s disclosure that it had parted with the digital asset for the first time in more than three years.

The sale, which totaled 32 Bitcoin for $2.5 million, represented a small slice of the company’s overall stockpile, yet the move tested faith in co-founder and Executive Chairman Michael Saylor, along with his vision for the digital asset’s largest corporate holder.

Strategy indicated in Monday’s filing that the company padded its cash reserves. Although the company’s latest purchase marked its largest in three weeks, the company pocketed roughly $80 million for the purpose of managing dividend payments and debt obligations.

Instead of highlighting the Bitcoin that it bought, Strategy emphasized an increase in its cash position. At present, Strategy said its cash reserves stood at $1 billion.

Last month, the company slashed those reserves by 61% to repurchase debt at a discount, leaving it with fewer resources to meet dividend obligations on its flagship preferred stock. Not long ago, the company had earmarked $2.25 billion in cash for Stretch (STRC).

On Monday, STRC was valued at $94.72, moving toward its $100 par value. When shares trade above that threshold, the company has historically issued STRC and used proceeds to purchase Bitcoin, a formula that has proved lucrative for Strategy this year.

Last week, Bitcoin plunged to $59,400, its lowest point since October 2024. The rout deepened unrealized losses on Strategy’s holdings that have reemerged over the past month. On Monday, the Bitcoin-buying firm’s stockpile was roughly $10.7 billion underwater.

Saylor indicated during the company’s first-quarter earnings call last month that it would “probably” sell some Bitcoin to “inoculate the market,” a move intended to convey the company’s commitment toward STRC’s 11.5% annual dividend—paid via monthly distributions.

“32?” Saylor asked plainly in an X post on Sunday, referring to the company’s latest sale, which totaled 0.0038% of the company’s current holdings.

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