Strategy pauses its Bitcoin buying spree to hoard a massive $3 billion cash cushion
CoinDesk 2026-07-13 15:27:36
Context: Strategy, a company led by Executive Chairman Michael Saylor, has paused its Bitcoin buying spree and instead focused on building a massive cash cushion of $3 billion. This move is aimed at providing the company with greater flexibility to navigate a potential Bitcoin bear market while continuing to meet its dividend and interest obligations. The company's decision to prioritize liquidity comes as Bitcoin's price may be due for a cyclical low later this year.
Key Facts
- Strategy has not purchased any Bitcoin since June 22, 2026, when it acquired 520 BTC for approximately $35 million, and has instead sold 3,588 BTC in two transactions, generating roughly $216 million.
- The company sold 1,363 BTC for approximately $80.8 million on June 30, 2026, followed by another 2,225 BTC for $135.2 million, reducing its holdings to 843,775 BTC.
- Strategy's US dollar reserve stood at approximately $2.55 billion following the sales, and has since increased to $3 billion, providing about 20.4 months of coverage for its preferred-stock dividends and debt interest.
- The company's annualized preferred-stock dividends and debt interest total roughly $1.76 billion, which the $3 billion reserve can cover for 20.4 months, giving Strategy greater flexibility to navigate a Bitcoin bear market.
- Strategy's perpetual preferred securities, particularly Stretch (STRC), have a current trading price of approximately $87, down around 0.5% on Monday, and trade at a discount to their $100 stated value, suggesting investors still require a higher yield to compensate for Bitcoin-related and liquidity risks.