Strategy Stops Buying Bitcoin for Fifth Straight Week as Focus Shifts to Q2 Earnings

Strategy, the world’s largest corporate holder of Bitcoin, has halted purchases of the cryptocurrency for a fifth straight week as it shifts its focus to preserving liquidity.

Bloomberg reported on July 30 that Strategy has not bought Bitcoin in each of the past five weeks.

The pause comes as Bitcoin prices have fallen. Strategy recorded $8.32 billion in unrealized losses on its Bitcoin investment in the second quarter alone.

Bitcoin fell about 14% in the second quarter. As of the end of June, it was down more than 45% from a year earlier.

Strategy has recently pivoted toward shoring up liquidity, including keeping open the option of selling Bitcoin if needed. Executive Chairman Michael Saylor is set to address the company’s stance on future Bitcoin purchases when it reports second-quarter results later on July 30.

“For a company like Strategy, the most important thing is to show the market that it has sufficient liquidity and can withstand a crypto bear market,” Brian Dobson, director of equity research at Clear Street, told Bloomberg.

STRC, the perpetual preferred stock Strategy introduced in the second half of last year as a fundraising tool, has traded below its $100 par value since May. Earlier this month, the company disclosed that it repurchased $25 million of STRC. It was the first time Strategy had bought back the preferred shares below par.

Strategy shares have fallen about 76% over the past year. Investors will be especially focused on how management explains its strategy for future Bitcoin accumulation, Dobson added.