Strategy did not buy Bitcoin for the fifth consecutive week, instead increasing its cash reserves
Strategy, led by Michael Saylor, reported on Monday that it did not make any Bitcoin purchases last week, marking the fifth consecutive week that the firm has paused its pioneering Bitcoin accumulation strategy amid continued declines in cryptocurrency prices. Driven by the rise in the broader market, the company's stock price rose 6.5% that day. Related documents also show that Strategy sold 5.4 million company shares for $544.5 million and increased its U.S. dollar reserves by $525 million to $3.75 billion. The reserves currently cover more than two years of its current total annual dividend and interest expenses of approximately $1.759 billion. Benchmark analyst Mark Palmer said: "Strategy's increase in U.S. dollar reserves directly responds to the core concern that plagues its perpetual preferred stock short thesis, which is that dividend and interest coverage are dependent on continued access to the equity market. By pre-locating funds in U.S. dollars for more than two years, Strategy reduces the short-term sensitivity of these payments to the market's willingness to absorb new equity issuance at any point in time." In addition, Strategy also used $25 million to repurchase STRC preferred shares at a price below par value. Strategy will release its quarterly financial results after the market close on Thursday.