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Strategy Halts Bitcoin Buys, Offloads Holdings Amid Losses

  • Strategy halted Bitcoin purchases and is now selling some holdings to fund operations, according to its Q2 earnings call.
  • Despite the pause, the company still reported a 25% increase in its BTC holdings since the start of this year.
  • Retail investors do not face the same dividend or buyback pressures, so they may not need to follow Strategy’s selling pattern.
  • Bitcoin’s four-year cycle suggests a potential new peak in 2029, with upward momentum possibly beginning in 2027.

According to Strategy’s Q2 earnings call, the company has stopped purchasing additional Bitcoin and is now selling some of its holdings to replenish its USD reserve. Despite halting new buys, Strategy still reported a 25% increase in BTC holdings since the beginning of this year.

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The firm is selling Bitcoin to fund preferred dividends, interest payments, and share buybacks. However, a retail investor does not need to sell BTC for these corporate expenses, so following Strategy’s approach may not be necessary.

Several factors are keeping Bitcoin under pressure, including macroeconomic uncertainty and geopolitical tensions that worsened after the US-Iran conflict. Inflation remains above the 2% target, and interest rates stay high, creating a challenging environment for Bitcoin.

Nevertheless, Bitcoin remains within its four-year trajectory, having hit new peaks in 2017, 2021, and 2025. If the pattern holds, a new all-time high could come in 2029, with the upward push possibly starting in 2027.

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