TL;DR
- Strategy paused its Bitcoin purchases from June 30 to July 6, the first halt since April, keeping its holdings at 597,325 BTC ($65 billion).
- Michael Saylor’s firm funds buy through at-the-market equity and preferred stock programs, raising $6.8 billion in Q2 and targeting $84 billion in capacity by 2027.
- Q2 results turned a $5.9 billion Q1 loss into a $14.05 billion unrealized gain, lifting its crypto asset value to $64.36 billion and putting investors on alert.
Michael Saylor’s Bitcoin-buying juggernaut has paused for the first time since April. Between June 30 and July 6, public filings show Strategy bought zero BTC, leaving its stash at 597,325 coins, roughly $65 billion at current prices. After weeks of consistent accumulation, Saylor quipped, “Some weeks you just need to HODL,” underscoring a rare moment of restraint in a strategy famed for relentless corporate treasuries stocked with digital gold.
Fueling the Bitcoin Juggernaut: ATM Programs and Preferred Stock
Strategy funds its purchases through at-the-market equity sales. In Q2, it raised $6.8 billion by selling Class A common shares (MSTR) and three perpetual preferred tickers, STRK, STRF, and STRD, with dividends ranging from 8% to 10%. Under its broadened “42/42” strategy, the company plans to access $84 billion in equity and convertibles by 2027. As of July 6, approximately $18.1 billion of MSTR, $20.5 billion of STRK, and $1.9 billion of STRF capacity were still available in the ATM pipeline.
Q2 Financials Flip the Script
The pause coincided with Strategy’s Q2 earnings, which unveiled a $14.05 billion unrealized gain on its Bitcoin holdings, reversing a $5.91 billion loss reported in Q1. That windfall triggered a $4.04 billion deferred tax expense and lifted the digital asset carrying value to $64.36 billion, balanced by a $6.31 billion tax liability. The company also secured a $31.1 million loan facility for capital investments, signaling a cautious but confident posture after quarters of volatility.
Market Reverberations and Competitive Landscape
Strategy’s break comes as more firms pile into Bitcoin treasuries, 135 public companies and rising, including Tether-backed Twenty One and Japan’s Metaplanet. While Strategy’s $110 billion market cap commands a premium to its Bitcoin NAV, analysts debate sustainability: TD Cowen backs the equity-to-BTC loop, but Franklin Templeton warns of feedback risks.
Even a Pomerantz class-action suit targeting alleged misstatements looms. With MSTR shares up 34.6% year-to-date, investors now watch to see if Saylor’s next move reboots the acquisition engine.
