Michael Saylor, the influential CEO of Strategy (MSTR), recently took to social media to share a tantalizing glimpse into the company’s Bitcoin acquisition strategy. On July 26, he posted a Bitcoin chart with the intriguing caption, “We’re gonna need another color.” This marks his fifth tease since the company’s last confirmed Bitcoin acquisition on June 22, stirring curiosity among crypto enthusiasts and investors alike.
The absence of Bitcoin purchases has been notable, with Strategy entering its longest buying pause in two years. As of the close on Friday, MSTR shares stood at $91.67, down from $94.85 the previous week. With this pause, many are speculating what’s next for the company, which holds a staggering 843,775 BTC at an average purchase price of $75,476 per coin. At current Bitcoin prices hovering around $64,600 to $65,000, this positions the company approximately $8.6 to $9.3 billion underwater.
Saylor’s recent post garnered significant attention, racking up over 11,000 likes and 1,400 replies, yet no further details were provided regarding any new purchases. Historically, Saylor’s Sunday posts have been viewed as precursors to Monday Bitcoin buy filings, making this recent silence particularly striking. His last notable post on June 28 preceded a shift in capital strategy rather than a new acquisition, while the July 5 post came shortly before the largest Bitcoin sale in the company’s history.
The phrase “another color” is not new to Saylor’s communications; he previously hinted at “green dots” just before announcing a 130 BTC purchase in late November, and in January, he toyed with the idea of “Orange or Green?” to suggest potential future moves. This playful use of color metaphors only heightens the intrigue surrounding Strategy’s next steps.
Why the Buying Pause?
Several factors appear to contribute to the company’s recent halt in acquisitions. Strategy’s enterprise market net asset value (mNAV)—the ratio of its market value to its net Bitcoin holdings—fell below 1 on June 27, indicating that selling stock to buy Bitcoin no longer enhances Bitcoin per share but instead dilutes it. Additionally, the company is grappling with increasing obligations on its preferred stock, which has seen a dividend rate rise to 12%, required to be paid in cash. This has resulted in a significant increase in dividend obligations, now ballooning to approximately $1.2 billion.
Despite these challenges, Strategy continues to raise capital and recently sold over 2.7 million MSTR shares for net proceeds of $263.5 million between July 13 and July 19. However, these proceeds are being allocated to reserves rather than Bitcoin purchases, leaving the dollar reserve at an impressive $3.225 billion, sufficient to cover roughly 1.8 years of dividend commitments.
Moreover, the company retains the capability to sell up to $23.53 billion in additional common stock under existing market programs, indicating that the decision to pause Bitcoin acquisitions is strategic rather than purely financial.
New Capital Framework and mNAV Redefinition
In late June, Strategy implemented a new capital framework that outlines various avenues for cash allocation. This includes a $1 billion buyback for digital credit securities and a similar amount for common stock, alongside a Bitcoin Monetization Program allowing for up to $1.25 billion in potential Bitcoin sales.
On July 23, the company also redefined its mNAV calculation methodology, now deducting senior claims—such as perpetual preferred stock and out-of-the-money convertible debt—net of the dollar reserve. The company cautioned that figures computed before this redefinition are not comparable to the revised calculations.
As Strategy prepares to release its second-quarter results after the U.S. market close on July 30, the crypto community will be watching closely for signs of how this prolonged buying pause might shape the company’s future in the volatile Bitcoin landscape.
