A week ago, Strategy did something it had not done since 2022. It sold a little bitcoin.
Now it's buying again, and not a little. It just grabbed nearly 50 times what it sold.
The Buy
Strategy holds more bitcoin than any other company. It used to be a software firm called MicroStrategy.
Now its main job is buying and holding bitcoin. Last week it bought 1,550 more coins for about $101 million.
That ran from June 1 to June 7. It paid an average of $65,332 a coin, Chairman Michael Saylor said.
The buy pushed its total to 845,256 bitcoin. To pay for it, Strategy sold $181 million of its own stock.
The cash came from an at-the-market program. In plain terms, the firm drips new shares into the market and spends the money on coins.
Saylor kept the news short. He called it "a good time to add more dots."
The sale a week earlier was tiny by contrast. Strategy sold just 32 coins for about $2.5 million.
That was a sliver of its stack, less than one hundredth of one percent. Still, it was the firm's first sale since December 2022, so it spooked some fans.
Some holders feared the sale meant trouble. Saylor's quick rebuy put that worry to rest.
The Cash Cushion
The bigger move might be the cash. Strategy lifted its cash reserve to $1 billion, up by $100 million.
That cash matters for one reason. Strategy sells a special stock that pays a fixed dividend.
A dividend is just cash a company pays out to its holders. Those payments are a promise, so the cash has to be there.
The bank JPMorgan had warned about a thin cash buffer. It said a small buffer could force the firm to sell bitcoin to pay those bills.
Think of the reserve as a rainy-day fund. It keeps you from selling the car to cover rent.
So the message has two parts. Strategy is still buying bitcoin, and it's stacking cash to keep the dividends safe.
What To Watch
The buy looks bold, but Strategy is still down on paper. It has spent about $64 billion on bitcoin.
Its average cost is $75,680 a coin. With bitcoin near $63,600, that stack is worth about $54 billion.
That leaves a paper loss of roughly $10 billion. A paper loss is one you have not locked in by selling.
JPMorgan thinks the buying is far from over. The bank expects Strategy to buy about $32 billion of bitcoin this year.
Strategy also has room to keep going. It can still sell about $26 billion of new shares to fund more buys.
Bitcoin fell around 15% last week before climbing back above $62,000. Saylor is buying the dip and topping off the cash drawer at the same time.
For investors, the takeaway is clear. Strategy is still all-in on bitcoin, loss or not.
Its stock, MSTR, moves with the coin. So this buy ties holders even tighter to bitcoin's price.
