The firm will dynamically split new capital between BTC and USD reserves, citing dividend, buyback, and risk concerns.
Strategy announced it will no longer allocate all new capital to Bitcoin purchases, opting instead for a dynamic split between BTC and USD reserves. The decision, revealed during its Q2 earnings call, aims to replenish USD reserves, fund dividends, and support share buybacks when advantageous.
Previously, the firm directed all new capital raises toward Bitcoin. Management cited counterparty and margin risks as reasons for not pursuing Bitcoin-backed borrowing. The shift reflects a more cautious approach amid market conditions.
No immediate market reaction was disclosed in the call.