Strategy’s (NASDAQ:MSTR) Bitcoin (CRYPTO: BTC) acquisition engine appears to be losing momentum as the company prioritizes rebuilding its cash reserves.

Strategy Slowing Down Accumulation

Strategy disclosed Monday that it purchased 520 BTC for $34.9 million last week at an average price of $67,068 per coin, marking it as one of the company’s smallest buy in recent months.

The company’s cash reserve climbed back to roughly $1.4 billion from $1.1 billion a week earlier.

The move follows turmoil in Strategy’s preferred stock ecosystem, particularly (NASDAQ:STRC), which recently plunged as low as $82 despite being designed to trade near its $100 par value.

Because STRC remains below par, Strategy has effectively paused issuance through the vehicle. This limits one of its primary funding sources for additional Bitcoin purchases, according to industry expert Scott Melker.

As a result, the company is increasingly relying on common stock issuance to raise cash, a strategy that some investors view as dilutive.

The slowdown is notable given Strategy’s historical role as BTC’s largest corporate buyer.

Rival Bitcoin treasury company Strive reportedly purchased 759 Bitcoin last week, surpassing Strategy’s weekly accumulation.

Reasons To Hold MSTR

In an X post on June 23, Strive’s Chief Risk Officer Jeff Walton argued that Strategy remains a compelling long-term Bitcoin vehicle for several reasons:

  • It benefits from passive index fund inflows.
  • It offers leveraged Bitcoin exposure without ETF fees.
  • It has deep options liquidity and actively compounds Bitcoin through capital markets strategies.
  • And it can be held in traditional retirement accounts.

He views MSTR as a leveraged Bitcoin bet, meaning it can outperform in bull markets but also suffer larger drawdowns.

Walton also believes Strategy’s Bitcoin treasury, capital markets infrastructure, and growing digital credit business would be extremely costly to replicate.

Despite MSTR being down about 80% from its all-time high, Walton remains heavily invested, arguing that the company’s management team have built one of the most effective capital accumulation machines in modern markets.

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