Quick Summary
- CEO Michael Saylor shared Strategy’s Bitcoin acquisition chart on Sunday, captioning it “We’re gonna need another color” ā marking his fifth cryptic message since the firm’s most recent verified Bitcoin acquisition on June 22.
- The company has abstained from purchasing Bitcoin for four consecutive weeks, representing its longest buying hiatus in a two-year span.
- MSTR shares ended Friday’s session at $91.67, declining from the previous week’s $94.85 close.
- The firm maintains a position of 843,775 BTC with an average purchase price of $75,476, resulting in an unrealized loss of approximately $8.6ā$9.3 billion at current Bitcoin prices of $64,600ā$65,000.
- Second-quarter financial results are scheduled for release on Thursday, July 30, following the close of U.S. markets.
On Sunday, July 26, Michael Saylor shared Strategy’s Bitcoin purchase chart on X, accompanied by the intriguing caption “We’re gonna need another color.” This marked the fifth such enigmatic message since the company last confirmed a Bitcoin transaction on June 22.
The social media update garnered more than 11,000 likes and attracted over 1,400 responses. Saylor provided no additional context, and Strategy has not verified any new Bitcoin acquisition.
MSTR shares concluded Friday’s trading at $91.67, representing a decline from the $94.85 closing price recorded the prior Friday.
Strategy’s Bitcoin treasury consists of 843,775 BTC accumulated through 113 separate transactions, with an aggregate cost basis of $75,476 per coin totaling $63.69 billion. Given Bitcoin’s current trading range near $64,600ā$65,000, the holdings reflect an unrealized deficit of approximately $8.6 to $9.3 billion.
Throughout the past two years, Saylor’s Sunday chart posts reliably preceded Monday Bitcoin acquisition announcements. That predictable sequence has recently dissolved. His June 28 message was followed by a new capital allocation strategy rather than a purchase. The July 5 post immediately preceded the company’s largest-ever Bitcoin divestiture.
The color reference has surfaced previously in Saylor’s communications. In late November, he alluded to “green dots” one day before Strategy announced a 130 BTC acquisition alongside $1.44 billion in cash reserves. On January 4, he posed the question “Orange or Green?” suggesting either cryptocurrency or cash would be the next focus.
The Rationale Behind Strategy’s Buying Halt
Strategy’s enterprise mNAV ā representing the ratio between market capitalization and net Bitcoin assets ā dropped beneath 1 on June 27. When this metric falls below unity, issuing equity to acquire Bitcoin diminishes rather than increases Bitcoin holdings per share, creating dilution.
Preferred stock dividend commitments present an additional constraint. The STRC preferred series dividend rate was elevated to 12% and requires cash settlement. According to Julio Moreno, CryptoQuant’s head of research, Strategy’s dividend obligations surged approximately fourfold over six months to $1.2 billion, while coverage capacity plummeted from over seven years to roughly 14 months.
Strategy continues capital-raising activities ā the firm sold 2,732,318 MSTR shares generating net proceeds of $263.5 million during the July 13ā19 period ā however, funds are being allocated to reserves rather than Bitcoin acquisitions. The cash reserve currently totals $3.225 billion, sufficient to cover approximately 1.8 years of dividend requirements.
Under existing at-the-market programs, the company retains authorization to issue up to $23.53 billion in additional common shares. The current buying suspension represents a strategic decision.
Revised Capital Strategy and mNAV Calculation Methodology
In late June, Strategy unveiled a comprehensive capital framework establishing multiple uses for available cash. The board authorized a $1 billion repurchase program for digital credit securities, a separate $1 billion common stock buyback initiative, and a Bitcoin Monetization Program permitting up to $1.25 billion in Bitcoin sales.
On July 23, Strategy modified its mNAV calculation methodology. The updated formula subtracts senior obligations ā encompassing perpetual preferred equity and out-of-the-money convertible bonds ā after deducting the dollar reserve. The company explicitly cautioned that historical figures computed before this date cannot be directly compared with the revised calculation.
Strategy is scheduled to release second-quarter earnings on Thursday, July 30, following the conclusion of regular U.S. market trading.
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