Strategy Pauses Bitcoin Accumulation as Stockpile Hits $80 Billion
Strategy, the world's largest corporate holder of Bitcoin, has paused its Bitcoin accumulation for the week. This pause comes as the company reported a significant gain in the fair value of its Bitcoin holdings in the third quarter, with its stockpile now worth nearly $80 billion. Meanwhile, Strategy's shares have risen, and traders on prediction markets were anticipating a Bitcoin price increase before the pause was announced.
Strategy's Bitcoin stockpile has been growing significantly. The company reported a $3.9 billion gain in the fair value of its Bitcoin holdings in the third quarter. This gain comes as Bitcoin's price has been near all-time highs, with Strategy's Bitcoin stockpile now worth nearly $80 billion on Monday.
The company has been issuing preferred shares with a 10% APY dividend rate to access funding beyond convertible debt and common shares. If Strategy misses dividend payments, the payout on some preferred shares will accrue, totaling $22.4 million and $37.6 million for the quarter respectively. Last week, Strategy made $140 million in dividend payments, the first time it paused Bitcoin buying since July.
Michael Saylor, Strategy's co-founder and Executive Chairman, signaled there would be 'no new orange dots this week' on X, indicating the pause in Bitcoin accumulation. This pause coincides with the end of the fiscal quarter, as Strategy has issued three weekly updates this year in which it did not buy Bitcoin. Traders on prediction market Polymarket were anticipating a Bitcoin price increase, with odds collapsing from over 60% to 1% on Sunday before the pause was announced.
Strategy's pause in Bitcoin accumulation comes as the company's Bitcoin stockpile reaches nearly $80 billion in value. The company has been accessing funding through preferred shares and has reported significant gains in the fair value of its Bitcoin holdings. While the pause in Bitcoin accumulation may be temporary, it remains to be seen how Strategy will continue to grow its Bitcoin stockpile in the coming weeks.
