Strategy Shifts to Low-Key 1,031 BTC Purchase After Two Weeks of Billion-Dollar Buys

Strategy has abruptly scaled back its aggressive Bitcoin acquisition strategy, purchasing just 1,031 BTC this week after two consecutive weeks of billion-dollar buys, signaling a potential tactical shift as BTC wobbles near $68,000. The company acquired the coins at an average price of $74,326, just before Bitcoin lost the critical $70,000 support level, bringing its total holdings to 762,099 BTC valued at approximately $57.69 billion.

Did Strategy change its weekly fundraising? 

The two previous weeks of significant buying, adding 17,994 BTC and 22,337 BTC, happened due to fundraising using the STRC preferred stock. The preferred shares were attractive for their 11.5% monthly dividend. 

Strategy achieved a two-week period of high demand for STRC, trading in the $99-$101 range. For the whole of last week, STRC traded below $100, meaning Strategy was unable to sell more preferred shares. 

During the past week, Strategy reported zero raises using STRC, but sold MSTR valued at $76.5M. The previous week was one of the few where Strategy sold more STRC compared to common stock. Strategy saw peak STRC activity in March, but still relied on equity to complete its inevitable purchase.

MSTR traded at $135.66, remaining relatively stable despite the dilution. However, without STRC, the playbook may continue with slower weekly growth, depleting the MSTR funding facility of approved shares. 

Will Strategy recover STRC demand?

A big part of the accelerated STRC buying was due to the ex-dividend deadline in March. According to analysts, the STRC recovery can take up to 10 days, allowing for a bigger BTC purchase next week.

In the meantime, STRC relies on an active secondary market with up to $200M in liquidity, according to Saylor. Currently, STRC offers 11.56% in effective dividend, once again raising the issue of Strategy sustaining its ability to pay down its obligations. 

Treasury companies have not entirely abandoned BTC. In the past week, Strive added more BTC, as well as American Bitcoin Corp., Gemini Space Station, Inc., and Capital B. However, Strategy is the only playbook company with regular raises, but the over-reliance on STRC recalls the usage of previous convertible preferred stocks STRD, STRK, and STRF. None of these preferred shares have been issued in months, but have added to Strategy’s dividend payment burden.

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