Update
Strategy Inc. Adjusts Bitcoin Purchases
Michael Saylor, the founder of Strategy Inc., announced a reduction in Bitcoin purchases, marking the company's lowest level in a year. The company has spent $21.5 million on Bitcoin acquisitions in the current reporting week, down from the previous year's high. This decision is attributed to the reallocation of capital within the internal debt market, where Strategy Inc. invested $192.4 million to buy back Series STRC preferred shares. These shares offer a higher yield of 12.31%, prompting the company to prioritize reducing the future dividend burden over Bitcoin purchases at current prices. The company maintains a $5.5 billion safety cushion in dollar instruments to ensure operational stability. The decision to reduce Bitcoin purchases reflects the company's response to MSCI's updated selection criteria, which could lead to the exclusion of Strategy Inc. from global investment benchmarks due to the high value of its Bitcoin holdings compared to its core software business.