Michael Saylor, executive chairman of Strategy, the corporate bitcoin treasury company formerly known as MicroStrategy, has paused the firm’s weekly bitcoin purchases and instead directed capital toward building US dollar reserves. The move has surprised some observers who have come to expect near-continuous bitcoin accumulation from the company, which holds the largest corporate bitcoin treasury in the world.
Strategy currently holds approximately 843,775 BTC, valued at around $54 billion at current prices. The company’s bitcoin acquisition strategy has been a defining feature of its corporate identity, with Saylor regularly announcing new purchases on social media. The shift to building dollar reserves marks a tactical departure from that approach.
The decision comes amid a challenging period for Strategy’s stock. The company’s MSTR shares have fallen approximately 79% from their peak, reflecting broader market skepticism about the bitcoin treasury model in a bear market. The company also faces pressure from its debt obligations, with Strategy CEO Phong Le recently identifying an $8,000 to $10,000 bitcoin price level as a stress threshold for the firm’s balance sheet.
Strategy raised $467 million through an at-the-market equity offering in a recent week but did not use the proceeds to buy bitcoin, unlike in previous similar raises. Instead, the company’s cash reserve climbed to approximately $3 billion, providing a buffer against potential margin calls or debt servicing needs.
JPMorgan analysts noted that Strategy’s larger cash reserves are an “encouraging sign” for bitcoin, as they reduce the probability of forced selling by the company in a downturn. The improved financial flexibility means Strategy is less likely to become a source of selling pressure that could amplify market declines.
Critics, including prominent Tesla investor Ross Gerber, have accused Saylor of damaging bitcoin’s reputation by turning the company into a leveraged bitcoin proxy that creates systemic risk for the broader market. Supporters counter that Strategy’s disciplined approach to treasury management, including the current shift to cash reserves, demonstrates long-term thinking rather than panic.
This article was adapted from U.Today. Read the original here.
