#SaylorStrategy
Strategy suspends the purchase of Bitcoin and accumulates cash reserves
Michael Saylor’s Strategy Inc. has temporarily halted Bitcoin purchases while increasing its cash reserves to $2.19 billion, possibly preparing for a prolonged decline in the cryptocurrency market.
The company based in Tysons Corner, Virginia, raised $748 million through the sale of common stock in the week ending December 21, according to a document filed on Monday with the U.S. Securities and Exchange Commission.
This pause follows approximately $2 billion in Bitcoin purchases over the previous two weeks, raising the company's total holdings to around $60 billion.
In early December, Strategy established a reserve of $1.4 billion specifically designated for future dividend and interest payments, addressing concerns that the company might be forced to sell Bitcoin if prices continue to fall.
Bitcoin has dropped approximately 30% since it reached its all-time highs in early October, while Strategy's shares have fallen more than 50% during the same period.
The company’s mNAV, a key valuation metric that compares enterprise value to Bitcoin holdings, stood at approximately 1.1 on Monday, according to the Strategy website.
