Strategy to Hold Off on Fresh Bitcoin Buying Until STRC Reclaims $100 Par

Strategy CEO Phong Le said the company will not restart its preferred-stock funded Bitcoin purchases until STRC — its preferred "Stretch" shares — trades back to its $100 par value, Bloomberg reported. Le said Strategy plans to resume issuing STRC and direct the proceeds into additional Bitcoin once the preferred returns to par, but he gave no timeline for that recovery. STRC has been central to Strategy's funding playbook: issuing new preferred shares provides cash that can be deployed into BTC. The security pays a variable dividend designed to keep the market price close to $100. STRC has traded below par since April and stood near $87 on July 16, according to Strategy's website. Issuing below par weakens the program's capital efficiency, reducing Bitcoin exposure per share and making new issuance less compelling. Le said rebuilding cash reserves became a priority after STRC fell below $75 in late June, adding that shareholders had urged the company to carry more cash. Strategy has increased its dollar reserves to $3 billion after selling about $466 million of MSTR shares, crypto.news reported. The added liquidity supports dividend payments, interest and other obligations without relying solely on Bitcoin holdings. To bolster cash, Strategy also sold Bitcoin in two recent reporting periods: 1,363 BTC for about $81 million in the week ending June 30, and 2,225 BTC for roughly $135 million in the week ending July 6. After those transactions, the company reported total holdings of 843,775 BTC. Even after the liquidation, Strategy reported a larger Bitcoin stash than BlackRock's spot Bitcoin ETF in the referenced figures: 843,775 BTC for Strategy versus 733,516 BTC for BlackRock's IBIT. Executive chairman Michael Saylor has positioned Strategy's securities against IBIT, posting on X that MSTR offers 1.0x BTC exposure, STRC 3.6x and STRF 11x. In equity trading, MSTR fell 3.65% on July 16 to $93.91, while Bitcoin traded near $64,800. The stock has moved out of a descending channel that formed after a May peak near $195, but it has struggled around the $100–$105 area. Traders are watching support near $90, with another floor around $83–$85 from late June. A daily close below $90 would threaten the recent breakout; a move through $100–$105 could set up a push toward $115–$120. Momentum indicators are mixed. The daily RSI is 39.16, pointing to weak demand but not an oversold condition. The MACD has flashed an early rebound signal, with the MACD line above the signal line and a positive histogram reading of 2.17, though both MACD lines remain below zero, suggesting the broader downtrend has not been fully reversed. Strategy is effectively pausing preferred-driven Bitcoin accumulation until STRC investor confidence improves and the preferred trades back at par. The larger cash buffer and recent BTC sales underscore a shift toward liquidity management aimed at supporting dividends and reassuring preferred holders, even as the firm maintains an edge in total Bitcoin held.