Strategy has not purchased bitcoin since 22 June and recently increased its United States dollar reserves to $3 billion to enhance liquidity.
Bitcoin sales and liquidity enhancement
During the week ending 5 July, Strategy sold 3,588 BTC through two transactions, receiving approximately $216 million in funding. Following the sale, the company ' s holding of bitcoin was reduced to 843,775 BTC.
Use of funds and reserves
The company indicated that the proceeds of the sale would be used to cover the priority dividends and to replenish the United States dollar reserves used for these payments. After sale, the United States dollar reserve, which is approximately $2.55 billion, has increased to $3 billion, sufficient to cover some 20.4 months of priority dividends and interest on debt.
Creditworthiness and market response
Strategy aims to increase the creditworthiness of its priority shares, in particular Stretch (STRC) securities, by enhancing its dollar reserves. Despite the volatility of the Bitcoin market, the company hopes to maintain its cash allocation when the Bitcoin price weakens. The current transaction price of STRC is about $87, up from $70 at the end of June, but still below $100 in nominal terms, reflecting investors ' concerns about the risks associated with the currency.
Additional information:Strategy purchased only 520 BTC on 22 June, and then moved to increased liquidity without further bitcoin purchases.