The Strategy firm, known for its Bitcoin investments, paused acquisitions of the cryptocurrency from June 30 to July 6. This marks the first time since April that the firm has not increased its holdings.
Pause in Bitcoin Purchases
As of July 6, Strategy holds 597,325 BTC, valued at over $65 billion. The average purchase price for these coins is approximately $70,982, with a total acquisition cost of around $42.4 billion. This puts the company’s unrealized profit at roughly $22.6 billion. Strategy’s Bitcoin holdings now represent about 2.8% of the total 21 million Bitcoin supply.
Company’s Long-Term Strategy
The pause in purchases comes after aggressive acquisitions, with the company having bought 4,980 BTC for $531.9 million between June 23 and June 29. Additionally, Strategy is shifting focus from selling common stock to offering perpetual preferred stock to raise capital, having raised $6.8 billion through its equity programs in late June.
Quarterly Results
Strategy recently released its second-quarter results, reporting an unrealized gain of $14.05 billion on its Bitcoin holdings. The firm also entered into a loan agreement allowing it to borrow up to $31.1 million for capital purchases.
Despite the temporary pause in purchases, Strategy remains the largest corporate holder of Bitcoin. Its long-term plans and recent results highlight the company's strong market position, raising concerns regarding dependency on cryptocurrency valuations.
