Strategy has kept its Bitcoin holdings unchanged at 840,447 BTC for the week ending Aug. 16, according to a Form 8-K submitted to the U.S. Securities and Exchange Commission. Meanwhile, the company’s cash reserve rose to $4.8 billion.
The main concern for investors is not whether Strategy still owns Bitcoin—it does, with an average purchase price of $75,385 per BTC. The bigger question is whether Bitcoin can maintain its footing without Strategy’s regular purchases, which have provided a consistent source of demand during market weakness.
Strategy Takes a Break From Bitcoin Buying
The filing showed that Strategy neither bought nor sold Bitcoin between Aug. 10 and Aug. 16. This came after the company sold 1,690 BTC for $108.6 million the previous week, directing the proceeds toward preferred-stock commitments instead of increasing its Bitcoin stash.
Rather than adding BTC, Strategy sold 3,458,866 MSTR shares through its at-the-market program, generating $333.7 million in net proceeds.
The company placed $149.1 million into its USD reserve, allocated $132.2 million toward the repurchase of 1,388,720 STRC preferred shares and used $52.4 million to cover preferred dividends. Executive Chairman Michael Saylor said the moves were aimed at extending Strategy’s financial runway rather than increasing its Bitcoin exposure.
Strategy created its dollar reserve on June 29 under its Digital Credit Capital Framework with an initial $2.55 billion. The reserve has since grown to $4.8 billion in approximately seven weeks. It is intended to cover preferred dividends and interest expenses, giving the company a dedicated liquidity pool outside its Bitcoin treasury.
Why Strategy’s Pause Matters for Bitcoin
The latest capital allocation shows that Strategy is taking a more defensive approach. The company is raising funds through common-stock sales, supporting STRC near the $99–$100 range and increasing its cash holdings instead of immediately putting additional capital into Bitcoin.
That does not mean the company has abandoned its Bitcoin treasury strategy. Strategy still controls 840,447 BTC, placing it among the largest corporate holders worldwide. It also has $653 million of unused STRC repurchase capacity and a separate $1 billion authorization to buy back MSTR shares.
Still, the absence of its usual Bitcoin purchases could have broader implications for the market. Strategy’s accumulation strategy had made its buying activity a predictable source of demand whenever Bitcoin weakened. With that buyer temporarily absent, BTC may have to rely more heavily on ETF inflows, institutional demand and other market participants to absorb selling pressure.
Strategy’s $75K Bitcoin Cost Basis
Strategy’s total Bitcoin investment of $63.36 billion translates to an average cost of $75,385 per BTC. That is considerably higher than Bitcoin’s price of approximately $64,268 at the time of the report.
Saylor has also highlighted the contrasting performance of STRC and Bitcoin. STRC gained 9% over the 12 months through Aug. 14, while Bitcoin declined 47% over the same period. That performance gap helps explain why Strategy is currently directing capital toward its preferred-stock obligations instead of aggressively accumulating more BTC.
Strategy’s elevated Bitcoin cost basis may also complicate future purchases. Buying more BTC while MSTR trades below its net asset value could dilute shareholders without producing the same per-share Bitcoin growth the company achieved when its stock traded at a premium.
What Could Support Bitcoin Now?
With Strategy’s regular buying activity on hold, Bitcoin’s near-term performance may increasingly depend on ETF flows, derivatives positioning and organic spot demand.
Traders could therefore place greater emphasis on key technical support levels. If Bitcoin falls through those zones, the absence of Strategy’s predictable buying could make the resulting decline more pronounced.
Strategy is also facing an MSCI index-eligibility review, with feedback expected by Sept. 30 and a decision anticipated by Oct. 16 ahead of the November index rebalance.
If MSCI removes MSTR from its global equity indexes, passive funds could be forced to sell the stock, potentially adding another layer of pressure while Strategy remains focused on its liquidity needs. The situation would also put its $4.8 billion reserve to the test as a genuine financial buffer.
A return to Bitcoin purchases after Strategy stabilizes its STRC obligations would suggest the current pause is simply a temporary shift in priorities.
However, if the company remains on the sidelines through the fall and receives an unfavorable MSCI decision, market volatility could increase as investors adjust to a Bitcoin market without Strategy acting as its most consistent corporate buyer.
