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Strategy stops Bitcoin buys, hoards $3 billion cash cushion
Strategy has not purchased any bitcoin since June 22, and it sold 3,588 BTC during the week ending July 5 while lifting its U.S. dollar reserve to about $3.0 billion.
According to CoinDesk, Strategy has paused its bitcoin buying after shifting toward liquidity management, increasing its U.S. dollar reserve to about $3 billion and stopping new purchases since June 22.
The outlet reports that the company sold 3,588 BTC in two transactions during the week ending July 5, including 1,363 BTC for about $80.8 million on June 30 and 2,225 BTC for $135.2 million. The sales generated roughly $216 million and reduced its holdings to 843,775 BTC.
CoinDesk says Strategy also framed the cash pile as coverage for its preferred-stock dividends and debt interest. Using annualized preferred-stock dividends and debt interest of roughly $1.76 billion, the $3 billion reserve provides about 20.4 months of coverage, after the reserve was about $2.55 billion prior to the sales.
The company indicated the proceeds would support distributions on its preferred stock and replenish the portion of its U.S. dollar reserve used to make those payments, CoinDesk reports. The outlet also notes Strategy said a further bitcoin decline could make the $3 billion reserve insufficient and could require additional funding or more bitcoin sales, potentially pressuring STRC and MSTR.
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