Strategy has skipped four straight weekly Bitcoin (BTC) purchases, its longest buying pause in two years. The company reports second-quarter earnings Thursday, July 30, after the US market closes.
SEC filings confirm Strategy’s last purchase covered the week ending June 21. Since then, the company has sold Bitcoin instead of adding to its stack.
A Pause Built on Falling mNAV
Strategy’s stock traded at a premium to its Bitcoin holdings for years, a ratio called mNAV. That premium let the company sell shares above BTC value and grow Bitcoin per share for holders.
The model breaks once mNAV drops toward 1. New share sales then destroy value instead of creating it. mNAV touched roughly 0.99 in late June, its first sub-parity reading ever, before recovering to about 1.03. Strategy’s holdings now trade underwater against their purchase price, and management puts the real breakeven closer to 1.22.
Strategy sold 3,588 BTC in two tranches between June 29 and July 5 for about $216 million. The sales funded preferred stock dividends and topped up its cash reserve. Strategy adopted this capital framework in late June, and the reserve reached $3.225 billion by July 20.
What Thursday Could Show
Strategy posted a $14.5 billion operating loss in the first quarter on Bitcoin’s mark-to-market decline. LSEG’s consensus estimate points to a swing back to $3.86 billion in Q2 operating income, but two of the seven analysts behind that number submitted forecasts before June’s bitcoin slide.
Thursday’s results will show whether Strategy sticks with this trade-off, raising fresh capital while leaving its Bitcoin holdings untouched.