Strategy Halts BTC Purchases Amid $14.06 Billion Gain

Strategy, a leading company in the Bitcoin (BTC) market, has temporarily halted its weekly BTC purchases for the first time in three months. This pause coincides with the company reporting substantial gains from its BTC holdings. For the quarter ending June 30, Strategy realized an unrealized gain of $14.06 billion, accompanied by a deferred tax expense of $4.04 billion. The company's digital asset value is now at $64.36 billion.

The decision to pause BTC purchases is part of Strategy's end-of-quarter adjustment period. The company has been on a buying spree since early April, but this week, it chose to focus on its quarterly results. This pause may also be influenced by the recent slowdown in demand for MSTR, STRK, and STRF shares, which has resulted in smaller weekly purchases.

Despite the pause, Strategy has sufficient authorized stocks to acquire up to 500,000 BTC, with its treasury-building efforts potentially extending until the end of the decade. The company's average purchase price for BTC has increased to $70,982, which is relatively lower compared to newer treasuries. This pause in buying new BTC may also be a normal operational move for the company at the end of the quarter.

The company has also announced a new at-the-market sale for STRD preferred stock, with the potential to raise $4.2 billion over time, depending on market conditions. The proceeds from this sale will be used for general corporate purposes, including new BTC acquisition, working capital, and paying out dividends for the Series A Perpetual Strife Preferred Stock (STRF) and the Series A Perpetual Strike Preferred Stock (STRK).

The pause in BTC purchases aligns with a broader trend of smaller additions to treasuries by other corporate entities, including Metaplanet, The Blockchain Group, and the Smart Web Company. Even without Strategy's involvement, other corporate buyers continue to remove thousands of BTC from the market.

The market's response to the skipped weekly purchase has been relatively subdued, with MSTR shares showing limited change. This suggests that the market may have anticipated the pause. MSTR shares traded above $402, recovering earlier losses. The company's decision to pause purchases and focus on its quarterly results underscores its strategic approach to managing its BTC holdings and maintaining its financial health.