Strategy restarts Bitcoin accumulation after 10-week pause

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Strategy buys Bitcoin

Highlights

Strategy bought $369.7 million of Bitcoin.
The purchase ended a 10-week buying pause.
Its Bitcoin holdings are worth about $73 billion.
Strategy raised $602.8 million from stock sales.

Strategy bought $369.7 million of Bitcoin in the week ended Aug. 30, Bloomberg reported. The company also raised $602.8 million through common-stock sales and repurchased $151.8 million of preferred shares, combining fresh capital raising with an effort to reshape its balance sheet.

Bitcoin rebound gives Strategy room to buy

The return to buying follows a difficult stretch for Strategy. Falling cryptocurrency prices had weighed heavily on its shares and raised questions about a model built around selling securities to finance additional Bitcoin purchases.

Conditions have since improved. Bitcoin’s rebound toward $80,000 has supported Strategy’s stock and narrowed the gap between the company’s market capitalization and the value of its cryptocurrency holdings. Strategy now owns roughly $73 billion of Bitcoin.

That recovery matters because Strategy has historically relied on its equity valuation to fund expansion of its Bitcoin position. When the shares traded at a substantial premium to the underlying cryptocurrency holdings, issuing new stock provided an efficient source of capital for further purchases.

The recent rebound has made that mechanism more viable again, although the conditions remain considerably weaker than during earlier stages of the Bitcoin cycle.

Balance sheet gets another layer of protection

Strategy is also building more financial flexibility around its Bitcoin position. Last week, the company established a separate cash pool alongside its existing reserve, providing additional resources for preferred-stock dividends, debt obligations, and other corporate expenses.

The two reserves stand at $5.1 billion and $1.61 billion, respectively. That structure gives management a larger liquidity buffer without requiring the company to sell Bitcoin to cover routine financial commitments.

Strategy’s shares rose about 2% in premarket trading Monday, but the longer-term performance remains weak. The stock has lost roughly 60% over the past year and remains well below the valuations that previously made equity issuance particularly attractive.

A key test for the Bitcoin treasury model

The $369.7 million purchase shows that Strategy is prepared to resume accumulation before its financing conditions have fully recovered. Raising $602.8 million through common shares also suggests that public equity remains an important source of funding for the strategy.

The stakes extend beyond a single Bitcoin purchase. With about $73 billion invested in the cryptocurrency, Strategy’s valuation and financing capacity are closely tied to Bitcoin prices. A sustained recovery could reopen the capital-raising cycle that supported earlier purchases, while another downturn would again put pressure on the model.

We also reported Strategy sells $467 million in stock but leaves Bitcoin untouched.

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