BREAKING: Michael Saylor’s Bitcoin machine has suddenly stopped.
Strategy has now gone eight straight weeks without buying a single Bitcoin.
Last week, the company sold 3.46 million shares and raised $333.7 million. In the past, that money would likely have gone straight into Bitcoin.
This time, not one dollar did.
Instead, Strategy used the cash to pay preferred dividends, repurchase $132.2 million worth of STRC shares, and strengthen its cash reserves.
The pressure is becoming difficult to ignore.
Strategy is reportedly sitting on a $10 billion paper loss from its Bitcoin holdings, while interest and preferred dividend payments cost the company around $1.72 billion every year.
The bigger problem is its mNAV.
It has fallen to just 1.04x, meaning Strategy’s market value is now almost equal to the value of the assets it holds.
That changes everything.
When the stock traded at a large premium, Strategy could sell new shares, raise cheap capital, and use the money to buy more Bitcoin. It was a powerful cycle.
But at 1.04x mNAV, issuing more shares to buy Bitcoin offers almost no advantage.
Strategy once sold stock to grow its Bitcoin pile.
Now, it is selling stock to cover dividends, repurchase preferred shares, and build cash reserves.
The Bitcoin strategy has not collapsed—but the machine that powered it is running out of fuel.
Strategy has now gone eight straight weeks without buying a single Bitcoin.
Last week, the company sold 3.46 million shares and raised $333.7 million. In the past, that money would likely have gone straight into Bitcoin.
This time, not one dollar did.
Instead, Strategy used the cash to pay preferred dividends, repurchase $132.2 million worth of STRC shares, and strengthen its cash reserves.
The pressure is becoming difficult to ignore.
Strategy is reportedly sitting on a $10 billion paper loss from its Bitcoin holdings, while interest and preferred dividend payments cost the company around $1.72 billion every year.
The bigger problem is its mNAV.
It has fallen to just 1.04x, meaning Strategy’s market value is now almost equal to the value of the assets it holds.
That changes everything.
When the stock traded at a large premium, Strategy could sell new shares, raise cheap capital, and use the money to buy more Bitcoin. It was a powerful cycle.
But at 1.04x mNAV, issuing more shares to buy Bitcoin offers almost no advantage.
Strategy once sold stock to grow its Bitcoin pile.
Now, it is selling stock to cover dividends, repurchase preferred shares, and build cash reserves.
The Bitcoin strategy has not collapsed—but the machine that powered it is running out of fuel.