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Strategy Stock Rises as Bitcoin Buying Pause Continues

· By Bernal Fintech Markets Desk

Strategy Inc. (NASDAQ:MSTR) shares climbed on Monday as the company reported it had not purchased any Bitcoin for the fifth consecutive week. Instead, Strategy focused on building its cash reserves and repurchasing preferred shares under its revised capital allocation strategy. The company disclosed in a filing that it sold $544.5 million worth of shares last week, raising its USD reserve to $3.75 billion.

Strategy’s decision to pause Bitcoin purchases has been ongoing for over a month, with no new Bitcoin acquisitions reported during the week ended July 26, 2026. The company’s Bitcoin holdings remain unchanged at 843,775 BTC, according to its latest treasury update. This move reflects a strategic shift toward strengthening its cash position and managing its capital more conservatively.

Capital Allocation Strategy

Strategy’s revised capital allocation strategy includes selling shares to bolster its cash reserves and repurchasing preferred shares. The company raised $525 million in cash reserves over the past week, signaling a focus on financial flexibility and long-term stability. This approach aligns with the company’s broader goal of ensuring sufficient liquidity to support its operations and future Bitcoin acquisition plans.

Additionally, Strategy tapped into its $1 billion preferred buyback program for the first time, spending $25 million on STRC shares. This move indicates a more diversified approach to capital management, balancing short-term liquidity needs with long-term strategic goals.

What it means for markets

Strategy’s pause in Bitcoin purchases may signal a shift in market dynamics, potentially impacting demand for the cryptocurrency. However, the company’s focus on strengthening its cash reserves could provide a more stable foundation for future Bitcoin acquisitions. Investors are closely watching how this strategy evolves and its potential impact on both Strategy’s stock and the broader cryptocurrency market.

Sources

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