Strategy, known as the largest corporate holder of Bitcoin, has paused its Bitcoin acquisition streak for four consecutive weeks. This marks the firm’s longest break from BTC purchases in nearly two years as it moves to strengthen its cash position before the release of its second-quarter earnings report.
Michael Saylor’s post triggers speculation on Bitcoin acquisition
On July 26, Michael Saylor, Executive Chairman of Strategy, posted a Bitcoin purchase chart on X, captioned, “We’re gonna need another color.” This message fueled speculation among followers, with many anticipating another major Bitcoin acquisition. The anticipation was further elevated by a similar post a few days prior, in which Saylor hinted at purchasing more Bitcoin but instead oversaw a substantial BTC sale. These posts echo a longstanding pattern of Saylor hinting at upcoming Bitcoin buys, usually followed by a US Securities and Exchange Commission (SEC) disclosure.
In Saylor’s words on X, “We’re gonna need another color,” many interpreted the statement as a nod towards further BTC accumulation.
Recently, however, this historical pattern has shifted, with the company departing from routine BTC purchases after such announcements. At the same time, Strategy’s latest public filings indicate a directional change in capital management strategy.
To date, Strategy has conducted 113 Bitcoin purchases for treasury management, holding a total of 843,775 BTC. These were acquired at an average price of $75,476 per Bitcoin, totaling $63.69 billion in investment.
At the current market price of $65,373.96 per Bitcoin, the company’s BTC holdings are now valued at $55.1 billion. This reflects a notional decline of approximately $8.6 billion compared to the initial investment amount.
| Holding | Total BTC | Average Purchase Price | Total Investment | Current Value | Difference |
|---|---|---|---|---|---|
| Strategy | 843,775 BTC | $75,476 | $63.69B | $55.1B | -$8.6B |
Strategy has also encountered valuation pressure. Since late June, the firm’s market Net Asset Value (mNAV) has fallen below 1, indicating that its market capitalization has dropped beneath the market value of its Bitcoin holdings. As a result, issuing additional shares to fund more BTC acquisitions has become less attractive.
Mini dictionary: mNAV, or market Net Asset Value, compares a company’s market capitalization with the value of its underlying assets. A mNAV below 1 implies that the firm’s market value is less than the value of the assets it holds.
Capital management shift: Building cash reserves
Instead of continuing aggressive Bitcoin buying, Strategy has opted to boost its cash holdings. Between July 13 and July 19, the firm sold more than 2.73 million shares of MSTR, generating approximately $263.5 million in net proceeds. According to a July 20 SEC filing, the company’s cash balance now stands at roughly $3.225 billion.
Despite this buildup, Strategy retains the option to sell an additional $23.53 billion in common stock via existing at-the-market programs. The company has also approved a $1 billion buyback for both digital credit securities and its common stock, and can liquidate up to $1.25 billion in Bitcoin if needed.
CryptoQuant Head of Research Julio Moreno suggested that the company’s annualized dividend commitments have almost quadrupled to $1.2 billion, while cash reserves have dropped 38% in 2026. Dividend coverage fell rapidly, prompting Moreno to recommend ending automatic BTC buys and focusing on rebuilding liquidity.
On July 23, Strategy updated its mNAV calculation, with representatives clarifying that figures before this change are no longer directly comparable. The firm’s leadership appears to be prioritizing a more conservative approach to capital allocation in light of increased financial obligations.
In June, CryptoQuant’s Julio Moreno urged Strategy to scale back Bitcoin purchases and replenish cash, highlighting that the ability to cover dividends from reserves had sharply declined over the past six months. Moreno emphasized the need for any future BTC purchases to follow an investment-driven philosophy rather than an automatic acquisition policy.
