Strategic Pivot or Prudent Pause? MicroStrategy Halts Bitcoin Buys to Fortify $2.2B Cash War Chest

In a notable shift from its aggressive acquisition strategy, MicroStrategy (MSTR) paused its bitcoin purchases last week. Instead, the company, led by Michael Saylor, bolstered its "USD Reserve" by $747.8 million through the sale of common stock. This reserve, now exceeding $2.2 billion, is specifically earmarked to cover dividends on its preferred stock for the next 32 months. The move highlights a strategic focus on financial stability and obligation management, even as the company sits on a massive, unrealized gain from its core holding of 671,268 BTC (worth ~$60.4B).

While MSTR stock is down significantly year-to-date, it saw a premarket bounce alongside Bitcoin's rise above $90,000, underscoring its enduring correlation with the crypto asset.