It's been over a month since Michael Saylor, the chairman of the world's largest Bitcoin treasury firm, Strategy, last announced a Bitcoin purchase to boost its treasury.
While Strategy is known for its consistent Bitcoin purchases every week, the firm has not made any purchase in the last four weeks; rather, it has continued to expand its cash reserve.
It appears that the vocal Bitcoin advocate has taken a break from his weekly Bitcoin purchases amid the growing speculation about Strategy's stock dilution that saw many industry leaders criticize his business model.
Strategy builds cash reserves instead
Rather than buying Bitcoin, Strategy has spent the last month consistently funding its cash reserve to potentially cover its dividend payments.
Following its latest filing, Strategy revealed it has added a massive $525 million to its U.S. dollar reserve, bringing its total cash holdings to $3.75 billion as of Monday, July 27.
The company further confirmed that its multi-billion cash reserve now provides dividend coverage for about 2.1 years, sparking discussions across the crypto community.
With this move, Strategy has proven to investors its ability to easily pay out dividends without having to sell from its large Bitcoin stash while shunning critics.
Strategy Bitcoin position remains
Despite the pause in Bitcoin purchases for multiple weeks, Strategy still remains the largest publicly traded corporate Bitcoin holder, as its portfolio remains unchanged at 843,775 BTC.
With this move, it appears that Strategy is focused on ensuring it has sufficient liquidity to pay its shareholders amid consistent market volatility.
Dan Burgin
U.Today Editorial Team
