Strategy Halts Bitcoin Purchases, Reminds Shareholders of No Direct BTC Ownership

Strategy, the business entity formerly known as MicroStrategy, recently revealed through legal filings that it has temporarily halted its Bitcoin acquisitions.

The move comes as the company also reminded its common shareholders that owning MSTR stock does not equate to holding a stake in the company’s Bitcoin reserves.

As of March 30, Strategy’s Bitcoin holdings remained at 528,185 BTC, purchased at an average price of $67,458. There has been no change in this amount since then. The company’s latest regulatory submission indicates that its At The Market (ATM) program, which typically facilitates share sales, was completely inactive last week. During this period, no shares of Class A common stock or Series A Perpetual Strike Preferred Stock were sold.

This pause in Bitcoin purchases is not unprecedented for Strategy. Previously, the company also took a break from acquiring BTC between September 20 and November 11. Additionally, Strategy has consistently clarified that its Bitcoin holdings do not legally belong to MSTR shareholders. The BTC is held by a custodian on the company’s behalf, with multiple creditors having claims on these assets, making direct ownership by shareholders legally impossible.

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Moreover, Strategy made it clear that MSTR shares do not function like an exchange-traded fund (ETF), as they do not grant redemption rights to the underlying assets. Instead, owning MSTR stock reflects a stake in the company’s equity, which includes not just Bitcoin but also its associated debts and various other business assets.

Despite the current pause, Strategy has been actively accumulating Bitcoin over the past year, at times buying the cryptocurrency as frequently as once a week. The company’s most recent purchase, announced on March 31, added 22,048 BTC to its holdings, marking a significant acquisition despite the recent pause.

Alexander Stefanov