Strategy Pauses Bitcoin Buying, Focuses on New Funding Channels

Nasdaq-listed firm Strategy, led by Michael Saylor, had paused its Bitcoin purchases between June 30 and July 6. As revealed in a new filing, this marks the first time the software intelligence firm has not added to its holdings since early April. Despite the pause, Strategy remains the largest corporate holder of Bitcoin. Strategy Holds Over $65B in Bitcoin 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. The pause in Bitcoin purchases comes after a period of aggressive acquisitions. The Virginia-based company had bought 4,980 BTC for $531.9 million between June 23 and June 29. However, the pace has slowed in recent weeks. This comes as the firm shifted focus from selling common stock to offering perpetual preferred stock to raise capital . In late June, Strategy raised $6.8 billion through its at-the-market equity programs, which included sales of Class A common stock and various types of preferred shares. Strategy’s Long-Term Bitcoin Plan Expands, Draws Mixed Views The company’s capital raising efforts support a long-term plan called the “42/42” program, which aims to raise $84 billion for Bitcoin acquisitions by 2027. This is double the original target under the earlier “21/21” plan. To date, Strategy has raised billions by selling shares and convertible notes, with additional funds still available through its ongoing programs. Furthermore, the firm’s market value has reached $110 billion, which is significantly higher than the net asset value (NAV) of its Bitcoin holdings. Some analysts believe this premium is justified due to the company’s strong equity-to-Bitcoin cycle. Others, however, have raised concerns about a possible negative feedback loop from overdependence on Bitcoin valuations. A recent class action lawsuit also claims that Strategy misled investors about its Bitcoin strategy. Quarterly Results Reflect Strong Bitcoin Gains Strategy recently released its second-quarter results. It reported an unrealized gain of $14.05 billion on its BTC holdings. During the second quarter, Strategy also entered into a loan agreement allowing it to borrow up to $31.1 million for capital purchases. Meanwhile, other companies like Metaplanet are adopting similar Bitcoin strategies . Tether-backed Twenty One, Trump Media, and GameStop are among other new entrants following this trend. Following this news, Strategy’s stock closed at $403.99, up by 0.4% on July 5. As of Monday morning, the shares dropped slightly in pre-market trading but are still up by over 34% this year. In comparison, the top coin is up 16.9% since the start of the year, currently trading at $108,346. The post Strategy Pauses Bitcoin Buying, Focuses on New Funding Channels appeared first on TheCoinrise.com .

Source: The Coin Rise