Strategy Share Buyback
Strategy Pauses Bitcoin Purchases and Spends $139 Million Repurchasing Preferred Shares
Anonymous
Key Points
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Bitcoin’s resilience was compared with the 2023 SEC enforcement wave, when lawsuits and delayed ETF approvals also failed to drive the cryptocurrency to new lows and were followed by durable market bottoms. Technically, BTC remained above its 50- and 200-period exponential moving averages, although an RSI reading of 78.78 indicated potentially overbought conditions.
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July’s Treasury flows showed a pronounced maturity split: private foreign investors bought $45 billion of Treasury bills while selling $29.1 billion of notes and bonds. Foreign official institutions partly offset that selling by buying $25.5 billion of notes and bonds, but net foreign acquisition of all long-term securities still fell to negative $27.9 billion.
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Strategy’s trading volume has surpassed Berkshire Hathaway’s, with the stock sometimes changing hands 46 million to 49 million times a day and generating as much as $4.4 billion in daily turnover. The company’s Bitcoin holdings amount to roughly 4% of the cryptocurrency’s eventual 21 million supply, while its equity and debt fundraising has helped finance further purchases.
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The company’s latest filing showed that it repurchased 1.42 million STRC preferred shares for about $139.3 million between Sept. 8 and Sept. 13, rather than buying more Bitcoin. Strategy’s shares had lost more than 75% from their November 2024 record, and CEO Phong Le defended the company’s recent Bitcoin sales by describing its balance sheet as “bullet-proof.”
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The altcoin rally was broad: none of the 40 most liquid cryptocurrencies declined during the period. NEAR Protocol gained 30.1%, Uniswap rose 26.2% and Aptos advanced 17.9%, while the relatively weaker performance of Bitcoin, Ethereum and XRP suggested a cautious rotation toward altcoins rather than a full-fledged altcoin season.
Strategy Inc. paused its aggressive Bitcoin buying spree and spent $139.3 million repurchasing preferred shares between September 8 and 13, according to CryptoInsider. The company, which holds 845,050 bitcoins worth roughly $65.7 billion, deployed cash reserves for balance sheet optimization instead of adding to its crypto stack — a rare shift for the firm that has become one of the most actively traded U.S. stocks.
Bitcoin itself remained resilient above key technical levels despite mixed signals: an RSI reading of 78.78 suggested overbought conditions, yet the cryptocurrency held above its 50-day and 200-day moving averages FXStreet reported. The broader crypto market rose 2.2% to $2.66 trillion, with altcoins like NEAR Protocol, Uniswap and Aptos leading gains while Bitcoin posted modest performance.
Why Strategy Paused Bitcoin Purchases Now
Strategy's decision reflected CEO Phong Le's stated focus on building a "bullet-proof balance sheet." The stock had plunged more than 75% from its November 2024 peak, forcing management to prioritize financial stability. Between July and mid-September, the company spent roughly $811 million repurchasing preferred shares rather than acquiring more bitcoin CryptoInsider.
The company maintains $6.4 billion in cash reserves alongside its massive bitcoin treasury. Michael Saylor, founder and executive chairman, reaffirmed bitcoin's role as a scarce global reserve asset with a fixed 21 million supply. Strategy now holds roughly 4% of all bitcoin that will ever exist, accumulated at an average cost of $75,412 per coin.
Treasury Flows Signal Caution Among Foreign Investors
U.S. Treasury data exposed a sharp divide in foreign investment behavior. Private foreign investors bought $45 billion in short-term T-bills while dumping $29.1 billion of longer-dated notes and bonds. The net result: foreign acquisitions of long-term securities fell to negative $27.9 billion, creating tighter liquidity conditions for risk assets like cryptocurrency.
This "maturity split" suggests investors are fleeing duration risk and seeking safety in short-term government debt. That pattern typically pressures riskier assets. Foreign official institutions tried to offset some selling by buying $25.5 billion of notes and bonds, but the overall flow remained unfavorable for crypto markets.
Bitcoin's Resilience Versus Technical Red Flags
Bitcoin rebounded over 30% from its July yearly low of $57,800, gaining nearly 33% and posting consecutive monthly gains in July and August FXStreet. The rebound echoed 2023 patterns: during that year's SEC enforcement wave and delayed ETF approvals, bitcoin also faced intense selling pressure before establishing durable market bottoms.
Yet caution persists. Spot Bitcoin ETF outflows and an RSI reading of 78.78 pointed to potentially overbought conditions FXStreet. While bitcoin held above its key moving averages, failed U.S. crypto legislation, rate hikes, a stronger dollar and higher oil prices created headwinds. The technical setup suggested elevated short-term pullback risk despite longer-term resilience.
Altcoin Rally Suggests Rotation Away From Bitcoin
While bitcoin treaded water, altcoins surged: NEAR Protocol jumped 30.1%, Uniswap rose 26.2% and Aptos advanced 17.9% FXStreet. None of the 40 most liquid cryptocurrencies declined during the period. The broad-based altcoin rally suggested traders were rotating out of bitcoin into smaller tokens rather than entering a full-fledged altseason.
The crypto market cap expanded 2.2% to $2.66 trillion as stock indices rose. Strategy's modest Bitcoin gains and its pause on new purchases stand in contrast to this altcoin enthusiasm. The shift highlights growing skepticism about bitcoin dominance even as the company holds roughly 4% of the eventual 21 million supply.
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