TLDR
- Strategy Inc. pauses Bitcoin buys, boosts dividends in Q3 strategy shift.
- Bitcoin buying on hold as Strategy Inc. focuses on dividend payouts.
- $140M in dividends as Strategy Inc. takes Q3 pause from BTC purchases.
- Strategy halts BTC buys, maintains bullish stance while rewarding holders.
- No BTC buys for Strategy Inc., but dividends flow and stock stays strong.
Strategy Inc. (MSTR) ended last week with a stock price of $359.69, marking a 2.29% rise on Friday. However, the pre-market session on Monday showed a decline to $353.50, reflecting a 1.72% drop.
Despite this shift, the company made headlines for halting its Bitcoin purchases while executing significant dividend payouts.
Strategy Paused Bitcoin Buying for the First Time Since July
Strategy Inc. halted its Bitcoin accumulation after consistent weekly purchases since the end of July. This pause aligned with the close of its third fiscal quarter and followed a predictable quarterly pattern. Although the company did not cite specific reasons, it emphasized this was a pause, not a change in direction.
The Virginia-based firm holds approximately 640,000 Bitcoin, with its treasury valued at nearly $80 billion. Bitcoin prices remain close to all-time highs, making the company’s holdings more valuable without requiring new purchases. Strategy has previously taken similar pauses around the end of previous fiscal quarters.
The firm continues to treat Bitcoin as its core reserve asset, but the pause suggests a potential reevaluation of timing. Analysts noted that the move coincides with strategic capital management decisions. The company has not indicated any long-term deviation from its Bitcoin-focused strategy.
Dividend Payments Continue Despite Crypto Hold
While it held back on Bitcoin buys, Strategy distributed $140 million in dividend payments last week. The payments covered its various preferred shares, even as two share classes, STRC and STRD, accrued interest. This reflects the company’s commitment to meeting financial obligations while managing digital assets conservatively.
According to SEC filings, the company recorded $22.4 million and $37.6 million in accrued interest for STRC and STRD respectively. These payments accumulated over the quarter due to the terms of the share structure. Such mechanisms provide flexibility while ensuring shareholder returns remain on track.
The ability to fund dividends while pausing purchases suggests a disciplined approach to managing cash flow and assets. With five types of preferred shares issued this year, the company has diversified its funding channels. Three of those share classes carry a 10% annualized yield.
Stock Performance Remains Resilient Amid Mixed Signals
Strategy’s stock rose 2.8% to $361 on Monday, bringing year-to-date gains to 25%. Despite volatility, the stock reached $450 in July and maintains momentum with the market’s interest in Bitcoin. The $3.9 billion gain in Bitcoin’s fair value during Q3 further supports investor confidence.
Even without new Bitcoin buys, market participants expected activity due to the firm’s pattern. On the Polymarket platform, trading odds for a purchase dropped from over 60% to 1% by Sunday. This highlights a disconnect between market speculation and Strategy’s predictable financial cadence.
Strategy’s Executive Chairman hinted online that no purchases were coming, reinforcing the pause. However, the company’s consistent alignment of pauses with quarter-ends shows planning. Moving forward, Strategy appears poised to resume accumulation when timing aligns with its broader capital strategy.
