Michael Saylor’s company, Strategy Inc., has temporarily paused its Bitcoin purchases while sharply increasing its cash holdings to $2.19 billion, a move that suggests the firm is bracing for a prolonged downturn in the cryptocurrency market.
The Tysons Corner, Virginia–based company raised $748 million through common share sales in the week ending December 21, according to a filing submitted on Monday to the U.S. Securities and Exchange Commission. The pause follows nearly $2 billion in Bitcoin buying over the prior two weeks, which lifted Strategy’s total Bitcoin exposure to roughly $60 billion.
Earlier this month, Strategy set aside a $1.4 billion cash reserve earmarked for future dividend and interest payments. The move was aimed at easing investor concerns that the company could be forced to sell Bitcoin if prices continue to fall. Bitcoin has declined by around 30% since hitting its all-time high in early October, while Strategy’s shares have dropped by more than 50% over the same period.
Strategy’s mNAV—a valuation metric that compares enterprise value to its Bitcoin holdings—stood at about 1.1 on Monday, according to data published on the company’s website. The relatively low ratio reflects ongoing market concerns that the metric could soon turn negative, after previously trading at a substantial premium.
