Strategy Halts Bitcoin Purchases Raises $4.2 Billion

Strategy, a prominent player in the Bitcoin market, has announced a significant capital raise of $4.2 billion through the issuance of preferred stock. This move comes after the company paused its Bitcoin purchases for the first time in three months. The halt in acquisitions occurred between June 30 and July 6, marking a departure from its aggressive buying spree that had been ongoing for the past three months.

The company, which holds approximately 597,325 BTC, has seen substantial gains from its Bitcoin holdings. At a market price of $109,000 per Bitcoin, the company’s holdings are valued at nearly $65 billion, representing more than $22 billion in unrealized gains. This pause in Bitcoin purchases follows an aggressive second quarter of 2025, during which Strategy added 41,407 BTC, including 4,980 BTC in the final week of June. The purchases were primarily funded through common stock sales, with additional funding from preferred equity.

The decision to halt Bitcoin acquisitions and raise capital through a stock offering suggests a strategic shift in the company's approach to its Bitcoin investment strategy. This move may be influenced by the legal scrutiny the company is currently facing. Strategy is involved in a class action lawsuit initiated by a well-established law firm, which alleges that the company overstated the profitability of its holdings, downplayed associated risks, and failed to fully disclose the financial impact of adopting new accounting standards.

The capital raise of $4.2 billion through perpetual preferred shares is aimed at funding future Bitcoin purchases and operational expenses. This move indicates that Strategy remains committed to its Bitcoin investment strategy, despite the temporary pause in acquisitions. The company's decision to raise capital through a stock offering rather than through additional Bitcoin purchases suggests a cautious approach to managing its financial risks and ensuring long-term sustainability.

The halt in Bitcoin purchases and the subsequent capital raise highlight the evolving landscape of corporate crypto investment strategies. Companies are increasingly recognizing the need for risk management and strategic planning in their crypto investments. Strategy's decision to pause acquisitions and raise capital through a stock offering demonstrates a proactive approach to managing financial risks and ensuring the long-term success of its Bitcoin investment strategy.