Strategy Plans to Resume Bitcoin Purchases
Phong Le, CEO of Strategy, has expressed confidence in the company's future Bitcoin acquisitions, contingent upon the recovery of its Stretch (STRC) preferred shares to their $100 par value. The firm paused its Bitcoin purchases at the end of June and has since raised $467 million in common stock to bolster its cash reserves to $3 billion, enough to cover dividends for the next two years.
In a recent interview with Bloomberg TV, Le emphasized the importance of restoring the par value of the STRC shares, stating that this recovery is critical for issuing more shares and resuming Bitcoin purchases. He noted, "When Stretch gets back to par, we'll issue more. We'll buy Bitcoin." However, he acknowledged uncertainty regarding the timeline for this recovery.
Building Cash Reserves
Since mid-May, STRC shares have been trading below their par value, recently hovering around $89. This situation complicates the issuance of new preferred shares for capital raising, making it essential for Strategy to restore their value. Le highlighted the key role of maintaining a solid U.S. dollar reserve, stating, "Having that liquid access to U.S. dollar capital is quite important." As the cash reserve grew, the shares have seen a slight increase from around $75 to nearly $90.
