Strategy
Strategy urged to pause Bitcoin buys over cash strain
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CryptoQuant has called on Strategy to halt its Bitcoin purchases and rebuild cash reserves after its preferred stock STRC hit a record discount. The move follows a sharp drop in dividend coverage and recent share sales to shore up liquidity.
Strategy sold 2.71 million shares of its common stock last week to raise $335.5 million, directing most of the proceeds into cash reserves rather than Bitcoin purchases. The move lifted the company's US dollar holdings to $1.4 billion while adding only 520 Bitcoin. The action followed a sharp drop in the price of its STRC preferred shares.
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Strategy executive chairman Michael Saylor posted a chart on Sunday suggesting another Bitcoin acquisition could follow. The post came as the company faces growing questions over its finances and recent Bitcoin sale.
Strategy sold 32 bitcoin between May 26 and May 31 at an average price of $77,135, raising about $2.5 million. The company disclosed the transaction in an 8-K filing on June 1 and said the proceeds will fund distributions on its STRC perpetual preferred stock.
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Strategy chief Michael Saylor posted a social media message on Sunday morning teasing a pending bitcoin purchase.
Strategy's STRC preferred stock falls below par
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