Article by: Lockridge Okoth
Compiled by Saoirse, Foresight News
Michael Saylor stated that Strategy is making a strong comeback. This two-word post came after Strategy had not purchased any Bitcoin (BTC) for a full 10 weeks.
Three subtle changes have emerged at the corporate financial level. It is these points that lead traders to view this development as a call to action, rather than merely a slogan.
The strategy's debt no longer hinders Bitcoin purchases.
Strategy holds approximately $6.69 billion in cash while carrying approximately $6.71 billion in convertible note debt. The company states that its current net leverage ratio is only 0.1%.
Throughout the summer, there was a persistent inverse spread between cash and debt, with traders pricing in the risk that companies might be forced to sell assets. Last week, this spread vanished entirely, with the two values nearly equalizing, prompting a 12% rise in MSTR’s stock price.
The pause in buying is real: The last time Strategy purchased Bitcoin was on June 22, acquiring 520 BTC at a unit price of $67,068. Since then, the company has sold Bitcoin four times. In August, the company received $3.28 billion in new funding, but all of this capital was converted into U.S. dollar cash and not used to purchase Bitcoin.
The accumulation of cash reserves is intentional, with the majority of funds allocated to the dividend payment reserve. The reserve stood at $3.75 billion in July and has now reached $5.1 billion.
Strategy USD reserves. Source: Strategy
STRC price is nearly back to its face value.
STRC is a preferred stock issued by Strategy to raise capital, with a dividend rate of 12% and a target trading price of $100.
On August 28, STRC closed at $97.33, with its 12-month low at $71.25. Once the stock price falls below $100, it results in cost erosion for the company.
STRC stock price movement. Data source: TradingView
Our goal is to maintain the STRC stock price within the $99–$100 range over the long term. If the STRC stock price falls below $100, we plan to orderly repurchase STRC shares according to established guidelines.
Chief Executive Officer Phong Le made this statement in the second-quarter earnings report.
Every dollar spent repurchasing STRC is a dollar less available to buy Bitcoin. In August, Strategy funded this market support operation by selling Bitcoin. When the stock price approached $97, this type of cash expenditure largely ceased.
Risk has further escalated. In July 2025, STRC completed a $2.47 billion financing at $90 per share, with a dividend yield of 9%; today, the outstanding amount of this preferred stock is approximately $10 billion, with a dividend yield of 12%.
The dividend payout is substantial. In the second quarter alone, Strategy paid $400.7 million in dividends on preferred shares.
Saylor signals, not an official document announcement.
Saylor included a chart alongside his post showing a total holding of 840,447 bitcoins, valued at $65.72 billion. Several hours earlier, he had posted, “Everything is normal.”
Michael Saylor hinted that he will continue buying Bitcoin. Source: Saylor’s X account
Neither of the above social posts constitutes a regulatory filing. However, the company’s Bitcoin purchase records will be reflected in the weekly report, with the next report expected to be published on Monday, August 31.
The strategy may have already purchased Bitcoin last week, but it's also possible that no purchase was made. After all, in July, he also declared that "Bitcoin has already won," yet subsequent buying activity was frozen for a full five weeks.