Firm pauses Bitcoin purchases until preferred shares hit $100 par, building $3 billion cash reserve amid crypto downturn.
Strategy will resume buying Bitcoin once its Stretch preferred shares return to $100 par value, CEO Phong Le said. The move allows profitable issuance of additional stock to fund purchases and bolster cash reserves.
The firm halted Bitcoin acquisitions in late June, raising $467 million via common stock to expand its cash reserve to $3 billion. This reserve covers two years of dividend payments. Le indicated debt risks would be reassessed if BTC falls to $8,000-$10,000.
Le described the preferred stock issuance as central to the capital plan, enhancing Bitcoin per share and shareholder value. The strategy aims to navigate the crypto downturn while maintaining financial flexibility.