Michael Saylor Highlights New Bitcoin Purchases by Strategy

Michael Saylor, the Executive Chairman (CEO) of Strategy Inc. (NASDAQ: MSTR), drew attention to the cryptocurrency market again on Sunday (26). The executive shared a chart showcasing the company's historical Bitcoin purchases.

The image was captioned "We need to change the color". The chart compiled dozens of orange markers, representing the BTC acquired by Strategy since 2020.

According to the data presented, the company holds a total of 843.775 BTC, acquired through 113 transactions. The estimated value of this holding is $54.36 billion.

Strategy paid an average price of approximately $75,653 per Bitcoin. The chart also indicated that the company has an unrealized loss of about $9.47 billion on its holdings.

Saylor's post featuring this chart attracted close attention from investors. This is because the executive had previously used this format when releasing updates about Strategy's Bitcoin reserves.

However, this time, the news was released after the company announced a significant operation involving its stock. From July 13 to 19, Strategy sold 2,732,318 shares of MSTR stock, raising $263.5 million.

Despite completing the fundraising, the company did not purchase Bitcoin during this period. Instead, the funds helped increase its cash reserves to $3.225 billion.

This strategy indicates that the capital obtained from selling stock does not need to be immediately used for new BTC purchases. The company can keep the funds in cash while fulfilling its financial obligations and evaluating new acquisitions.

Strategy also has authorization to sell up to $23.53 billion in additional common stock, specifically through its existing projects. This information was included in a filing submitted to the U.S. Securities and Exchange Commission (SEC) on July 20.

This amount represents the capacity still available for issuance, not the amount already raised. If new stock is sold, the funds can be used for Bitcoin purchases, cash, or other company needs.

The importance of financial reserves has become more pronounced as the company set a cash target of $3 billion to cover dividends for over 20 months. With the current balance of $3.225 billion, the estimated coverage period is about 1.8 years.

Additionally, Strategy calculates that the market value of its Bitcoin is equivalent to covering its preferred stock dividends for about 31 years. In this context, maintaining a larger reserve gives the company greater flexibility in deciding its next Bitcoin-related operations.

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