Michael Saylor Raises Questions About Strategy's Next Bitcoin Purchase

Is Michael Saylor preparing for a new move on Bitcoin? After a pause in BTC purchases, the executive chairman of Strategy has reignited speculation with a simple message posted on X: "What is the next step?" Behind this question lies a major issue. While the company holds over 4% of the total Bitcoin supply and now has a record cash reserve, the market is wondering about the next step in its strategy. Every decision made by the firm is now scrutinized as a signal for the entire crypto ecosystem.

In Brief

• A tweet reignites speculation as Strategy has not purchased any Bitcoin since June 22.
• The company holds 843,775 BTC (4.02% of the total supply), valued at over $54 billion.
• Bitcoin sales have financed quarterly and monthly dividend payments.
• The group is shifting from passive accumulation to dynamic management of its corporate treasury.

A Pause in Purchases and Targeted Bitcoin Sales: The Financial Overview of Strategy's Treasury

While he has just rejected BIP 110, Michael Saylor shared a chart that provides a precise overview of the positions held by the company:

• Holding volume: 843,775 BTC held on the balance sheet, representing about 4.02% of the total fixed supply of 21 million Bitcoins;
• Valuation and costs: a total estimated value of $54.28 billion (based on a price of $64,312 per unit), with a cumulative acquisition cost of $63.83 billion and an average price of $75,653 per Bitcoin;
• Recent movements: no purchases made between July 6 and July 12 (extended pause since June 22), coupled with a sale of 32 BTC for $2.5 million at the end of May and a larger sale of 3,588 BTC on July 5 for about $216 million.

This recent dynamic translates into critical quarterly performances, contrasting with annual results. Strategy's dashboard indicates a negative quarterly return in Bitcoin of -1.6%, representing a loss of 13,200 BTC and a nominal contraction of $849 million. In contrast, data since the beginning of the year remains in the green, with a positive return of 6.6%, representing a gain of 44,000 BTC or $2.84 billion.

Despite these quarterly fluctuations, Michael Saylor reiterated his long-term vision, describing the adoption of Bitcoin by companies as "necessary, inevitable, and welcome" for the development of the asset as a global monetary network. With 197 listed companies holding a combined total of 1.263 million BTC as of July 18, Strategy alone accounts for 66.8% of this institutional holding, giving each of its decisions systemic significance in the market.

Strengthening Reserves and Covering Debt

Alongside the stagnation of its crypto holdings, Strategy has significantly strengthened its equity structure and liquidity position in fiat currency. In the week ending July 12, the company raised $466.7 million in net proceeds by selling 4,818,781 MSTR common shares. A large portion of this capital, amounting to $450 million, was immediately allocated to strengthening its US dollar reserve, bringing it to a record level of $3 billion.

This cash treasury, partly composed of unsettled stock sales as of the report date, marks a clear turning point: proceeds from stock issuance are no longer systematically reinvested into immediate Bitcoin purchases but are prioritized to consolidate the company's balance sheet.

This $3 billion treasure now provides Michael Saylor's Strategy with an estimated financial cushion of 20.4 months to meet its $1.763 billion annual dividend obligations on its preferred shares. Such a reserve is also configured to ensure the servicing of interest on its ongoing bond debt without relying on emergency financing.

By reducing its dependence on short-term capital markets, the company ensures a significant operational safety margin. The establishment of this liquidity cushion shows that management is seeking to protect its overall financial structure, ensuring regular payment of recurring expenses while maintaining its exposure to cryptos.

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