Strategy Stops Buying Bitcoin Again — Buys Back Its Own Stock Instead

Strategy, one of the world's biggest corporate Bitcoin buyers, has stopped buying Bitcoin — again. Just one week after resuming purchases (following a 10-week break), the company hit pause once more.

Instead of buying more Bitcoin, the firm is spending money on buying back its own stock (repurchasing shares it previously sold to investors — this usually helps support the share price). It also doubled the size of a special repurchase program.

Here are the key numbers:

• $176 million spent buying back its STRC shares (a type of credit security)
• Its repurchase program was doubled from $1 billion to $2 billion
• The company still holds 845,050 bitcoins, worth over $66 billion today
• It has $6.5 billion in cash reserves (money kept on hand for safety)
• Its Bitcoin was bought at an average price near $63,730 per coin

The company had already paused buying in June, choosing instead to build up cash and even sell some of its Bitcoin. CEO Phong Le defended this, saying the firm now has a "bullet-proof balance sheet" (a very strong financial position that can survive tough times).

In July, Strategy reported an $8.22 billion loss. But Le told investors this was just a "paper loss" (a loss that only exists on paper because the price dropped — not a real loss until you actually sell). He compared his company to a giant bank: "We're the J.P. Morgan of the crypto economy."

A bit of background: Strategy (formerly called MicroStrategy) started as a software company. In 2020 it began buying Bitcoin to protect its money from inflation (when rising prices make cash worth less over time). Today, investors buy its shares mainly to get exposure to Bitcoin.

The takeaway: For now, Strategy is focused on strengthening its finances and supporting its stock price rather than adding more Bitcoin.

This is an AI-generated summary. Read the original article at: https://bitcoinmagazine.com/news/strategy-halted-bitcoin-buys-last-week