Strategy Halts Bitcoin Purchases After 3 Weeks, Sells $216M Worth

Strategy (NASDAQ: MSTR) halted Bitcoin purchases for three consecutive weeks since the 22nd of last month, according to CoinDesk on the 13th (US local time). The company sold 3,588 Bitcoin between the end of last month and the 5th of this month, securing approximately $216 million in cash. This marks a strategic shift for the company previously known for aggressive Bitcoin accumulation, driven by management's capital management framework to ensure stable dividend and debt interest payments during periods of Bitcoin price decline.

Strategy Sells 3,588 Bitcoin in Two Transactions

Strategy executed two separate Bitcoin sales during the period. On the 30th of last month, the company sold 1,363 Bitcoin for approximately $80.8 million. Subsequently, Strategy sold an additional 2,225 Bitcoin for $135.2 million. These transactions reduced Strategy's Bitcoin holdings to 843,775 coins.

Company Secures $3 Billion Cash Reserve for 20-Month Coverage

Strategy now maintains $3 billion in US dollar reserves following the Bitcoin sales. The company stated this cash reserve demonstrates stability to pay preferred stock dividends and debt interest without disruption even during periods of declining Bitcoin value. The secured $3 billion cash position is sufficient to cover dividend and interest expenses for more than 20 months.

Economist Peter Schiff Criticizes Cash Strategy

Economist Peter Schiff and others criticized Strategy's Bitcoin sale and cash securing strategy. Schiff characterized the move as damaging to shareholder value.

FAQ

How much Bitcoin did Strategy sell between the end of last month and the 5th of this month?

Strategy sold 3,588 Bitcoin during this period, securing approximately $216 million in cash through two separate transactions.

Why did Strategy halt Bitcoin purchases and sell holdings?

The company stated this was a strategic measure under management's capital management framework to demonstrate stability in paying preferred stock dividends and debt interest without disruption during periods of Bitcoin price decline.