Strategy reduces liquidity buffer by 61% to repurchase $1.5 billion in debt, avoiding Bitcoin sales amid market speculation.
Strategy slashed its cash reserves by $1.38 billion, or 61%, to repurchase $1.5 billion in debt, leaving $871 million for dividends and debt servicing. The move follows earlier plans to use resources to manage its $10.4 billion debt burden, which had raised concerns about potential Bitcoin sales.
The firm previously held $2.25 billion in reserves, established in December to reassure investors and avoid selling its 843,738 Bitcoin, valued at $64.7 billion. Analysts had praised the buffer as a prudent step to secure capital market access, though traders on prediction market Myriad still see a 71% chance of Bitcoin sales this year.
Leadership, including CFO Andrew Kang, had signaled flexibility in deploying assets, but the firm opted to reduce cash reserves instead of liquidating Bitcoin holdings. The decision comes as Bitcoin prices remain volatile, with the firm avoiding sales despite market pressures.