Strategy pauses 3-month purchase streak, reports $14B gain on Q2 BTC buys

Source Cryptopolitan

Strategy (MSTR) accounted for $14B in appreciation for its total BTC holdings. This time around, the leading treasury company paused its weekly BTC purchases for the first time since early April. 

Strategy (MSTR) skipped its weekly BTC purchase, instead drawing attention to its Q2 gains. The company’s treasury accounted for $14B in total appreciation for Q2, as BTC recovered to over $109,000. 

Strategy reports $14B in appreciation for Q2, pauses new purchases
Strategy paused its BTC purchases for the first time in three months, as part of its end-of-quarter adjustment period. For the past week, Strategy did not sell any common or preferred shares. | Source: Bitcoin Treasuries

For the quarter ended June 30, Strategy achieved an unrealized gain of $14.06B, incurring a deferred tax expense of $4.04B. The company reported digital asset value of $64.36B. 

The latest S-8 filing, however, reveals the company paused its weekly purchases. For the last time, Strategy skipped its weekly purchase on April 7, continuing with renewed buying a week later. 

Until recently, Saylor’s firm did not seem to have any problems buying near the top. However, after a 12-week buying streak, demand for MSTR, STRK, and STRF started to stall, leading to smaller weekly purchases. The recent pause in buying new BTC may also be a normal operation for the company at the end of the quarter. 

After the latest skipped purchase, Strategy retains enough authorized stocks to buy up to 500K BTC, as its treasury-building may run up to the end of the decade. For now, the firm’s purchases remain viable, as BTC hovers at a relatively high range, with no significant cycle corrections. 

The market may have anticipated the skipped weekly purchase, leaving MSTR shares with limited change. MSTR traded above $402, recovering earlier losses. 

Strategy skips weekly BTC purchase

The three-month streak for Strategy once again raised questions about its MSTR stock dilution and the issuance of its alternative convertible shares. On Sunday, executive chairman Michael Saylor hinted at no new purchases this week. 

Strategy paused at 597,325 BTC, with an average purchase price rising to $70,982, at the lower range compared to newer treasuries. After accelerated buying from new corporate treasury firms, MSTR is facing competition in the demand for shares. Other stocks often outperform MSTR, though trading under less liquid conditions and with higher risk of volatility.

The skipped weekly purchase coincides with a general boost in smaller additions to treasuries, including those of Metaplanet, The Blockchain Group, the Smart Web Company, and others. Even Semler Scientific added another 187 BTC in one of its sporadic purchases. 

Even without Saylor’s involvement, IBIT and other corporate buyers take thousands of BTC off the market. 

STRD at-the-market program opens

Until recently, the new preferred STRD shares only saw minimal placements. Following this week’s BTC buying hiatus, Strategy announced a new at-the-market program for STRD. 

The new STRD ATM program intends to raise up to $4.2B over time, depending on market conditions. STRD may be sold and placed by agents and other methods deemed “at the market.”

The STRD ATM program will supply funds for general corporate purposes, including new BTC acquisition, as well as for working capital. Strategy may also use the proceeds to pay out the 10% dividends for the Series A Perpetual Strife Preferred Stock (STRF) and the Series A Perpetual Strike Preferred Stock (STRK).

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Disclaimer: For information purposes only. Past performance is not indicative of future results.
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