Strategy Executive Chairman Michael Saylor posted "We're Back" on X, suggesting the company may resume bitcoin purchases after a two-month pause. Bitcoin rose to $78,923 as the company's cash reserves nearly offset its convertible debt, reducing net leverage to 0.1 percent.
Bitcoin rose 1 percent to $78,923 as Michael Saylor's "We're Back" post on X suggested Strategy may resume bitcoin purchases after a two-month pause.
"We're Back," Michael Saylor, executive chairman at Strategy, said in a post on X on Saturday, suggesting the company may have resumed bitcoin purchases for the first time since June 22.
Strategy holds approximately $6.69 billion in cash against $6.71 billion in convertible note debt, cutting net leverage to 0.1 percent. The company last bought bitcoin on June 22, acquiring 520 BTC at $67,068 per coin, then sold bitcoin four times to support its balance sheet. In August, Strategy raised $3.28 billion in new funding, holding it as U.S. dollar cash rather than buying bitcoin. Its preferred stock, STRC, closed at $97.33 on Aug. 28, near its $100 par value target, with a 12 percent dividend rate.
With nearly four years of preferred-dividend coverage, any new capital raised is likely to fund bitcoin purchases and further STRC buybacks. The company's next weekly bitcoin purchase report is due Aug. 31. Bitcoin dominance has climbed almost 4 percent from its June low to above 60 percent, showing strength against the broader crypto market.
The post comes after Strategy spent the summer selling some of its bitcoin holdings to strengthen its balance sheet, starting in May. More recently, it halted bitcoin sales and sold MSTR shares instead to increase U.S. dollar reserves, while beginning to buy back its preferred stock.
STRC, which carries a 12 percent dividend rate and a target trading price of $100, closed at $97.33 on Aug. 28, with a 12-month low of $71.25. Chief Executive Officer Phong Le said in the second-quarter earnings report that the company aims to maintain STRC within the $99-$100 range and would repurchase shares if the price falls below $100.
Saylor's post included a chart showing total holdings of 840,447 bitcoins, valued at $65.72 billion. Neither the post nor the chart constitutes a regulatory filing, and the company's bitcoin purchase records will be reflected in its weekly report expected Aug. 31.
The strategy may have already bought bitcoin last week, but it's also possible no purchase was made. In July, Saylor declared "Bitcoin has already won," yet buying remained frozen for five weeks afterward.
MSTR shares rose 7.31 percent to $127.36 at Friday's close. Bitcoin is up more than 2.5 percent from Friday's low, recovering after Federal Reserve Chair Kevin Warsh's hawkish Jackson Hole speech. A resumption of buying by Strategy, one of the largest corporate bitcoin holders, would add upward pressure on the asset and support MSTR's valuation premium.
This article is for informational purposes only and does not constitute investment advice.
