Strategy Eyes Q2 Earnings as Bitcoin Buying Freeze Hits One Month

Strategy has paused its weekly Bitcoin purchases for four weeks in a row, marking its longest buying break in two years. The company is set to report its second quarter earnings on Thursday, July 30, after the United States market closes.

SEC filings show that Strategy last bought Bitcoin during the week ending on June 21. Since then, the firm has actually sold some coins rather than adding to its treasury. The shift happened because the stock price fell close to the actual value of its Bitcoin holdings, a ratio known as mNAV. When that premium disappears, selling new shares hurts existing holders instead of helping them.

To cover dividends and build a cash reserve, Strategy sold 3,588 Bitcoin for roughly $216 million between late June and early July. That cash reserve reached $3.225 billion by July 20. Traders will watch Thursday's report closely to see if the company plans to resume buying Bitcoin or stick to building up its cash.

Market participants should keep an eye on Thursday's earnings release for any updates on the capital strategy. How management handles the balance between stock value and Bitcoin holdings will set the tone for the market next week.