Strategy has paused weekly Bitcoin purchases for four consecutive weeks, its longest buying freeze in two years, according to SEC filings. The company reports second-quarter earnings on July 30 after the US market closes. Strategy's last Bitcoin acquisition covered the week ending June 21, after which the firm shifted to selling BTC instead of accumulating. The pause follows a collapse in the company's mNAV ratio—stock price relative to Bitcoin holdings per share—which touched approximately 0.99 in late June, marking its first sub-parity reading. Strategy's business model historically relied on maintaining an mNAV premium above 1.0 to fund accretive Bitcoin purchases through equity issuance.
Strategy's mNAV Ratio Dropped to 0.99 in Late June
Strategy's stock traded at a premium to its Bitcoin holdings for years, measured by the mNAV ratio. This premium allowed the company to sell shares above Bitcoin value and increase Bitcoin per share for existing holders. The model stops working when mNAV approaches 1.0, at which point new share sales dilute rather than enhance Bitcoin holdings per share. The mNAV ratio touched approximately 0.99 in late June before recovering to about 1.03. Management stated the real breakeven threshold sits closer to 1.22. Strategy's Bitcoin holdings now trade below their aggregate purchase price.
Strategy Sold 3,588 BTC Between June 29 and July 5
Strategy sold 3,588 BTC in two separate transactions between June 29 and July 5 for approximately $216 million. The company used the proceeds to fund preferred stock dividends and increase its cash reserve. Strategy adopted a new capital framework in late June, and the cash reserve reached $3.225 billion by July 20. The sales represent the company's first Bitcoin disposals after an extended accumulation period.
Strategy Q2 Earnings Report Scheduled July 30
Strategy posted a $14.5 billion operating loss in the first quarter driven by Bitcoin's mark-to-market decline. The LSEG consensus estimate projects $3.86 billion in second-quarter operating income, though two of the seven contributing analysts submitted forecasts before Bitcoin's June price decline. The company reports second-quarter results on July 30 after the US market closes.
FAQ
When did Strategy last purchase Bitcoin?
Strategy's last Bitcoin purchase covered the week ending June 21, according to SEC filings. The company has not acquired additional Bitcoin in the four weeks since that transaction.
Why did Strategy pause Bitcoin buying?
Strategy paused purchases after its mNAV ratio dropped to approximately 0.99 in late June, the first time the metric fell below 1.0. When mNAV trades below parity, issuing new shares to buy Bitcoin dilutes existing shareholders rather than increasing their Bitcoin holdings per share.
How much Bitcoin did Strategy sell in late June?
Strategy sold 3,588 BTC between June 29 and July 5 for approximately $216 million. The company used the proceeds to pay preferred stock dividends and add to its cash reserve, which reached $3.225 billion by July 20.
