MicroStrategy Pauses Bitcoin Buys & Stock Sales—Still HODLing 478,740 BTC

Strategy has paused both buying and selling of Bitcoin. This is the first time in 14 weeks that the company, led by co-founder Michael Saylor, has not bought Bitcoin.

Only one other time in the past 14 weeks has the company not bought.

Last week Strategy did not buy any more BTC or issue any shares under its at-the-market equity program. This is after a big purchase of 7,633 BTC for $742 million just a week prior to that—the first purchase after the rebranding.

Historically the company has used stock sales to fund its Bitcoin purchases so this is notable.

Strategy now holds 478,740 BTC bought at a total cost of $31.1 billion with an average cost of $65,033 per Bitcoin. The company is the largest corporate holder of Bitcoin and remains a Bitcoin treasury entity.

MSTR Stock Declines Amidst Strategic Pause

After Strategy paused buying and selling Bitcoin, MicroStrategy’s stock (MSTR) fell. According to Nasdaq, MSTR is trading at around $336 down from the open. Despite the drop the stock is still up 16% YTD.

Notably, investment giant JP Morgan just bought $100 million of MSTR stock. Technical analysts like Ali Martinez are also predicting a 52% increase in MSTR stock as it breaks out of a consolidation triangle.

What’s Next for Strategy’s Bitcoin Holdings?

With nearly 500,000 BTC on its balance sheet, Strategy’s next moves are important for institutional and retail Bitcoin investors. Here are several factors that will determine the company’s next Bitcoin move:

• Market Conditions: Bitcoin’s price volatility may impact the timing of the next purchase.

• Liquidity Management: The company uses stock sales to fund Bitcoin purchases so there may be a return to equity offerings.

• Regulatory Landscape: Any changes in Bitcoin related regulations will impact corporate adoption strategies.

Given Strategy’s history of strategic Bitcoin buys, the pause may be temporary. The company’s next move will be important for all Bitcoin investors.