Bitcoin treasury firm Strategy breaks from 'never sell' approach to the flagship crypto
Key takeaways
- Livestream Menu Make Itselect USAINTLLivestream Search quotes, news & videos Livestream Watchlist SIGN INCreate free account Markets Business Investing Tech Politics Video Watchlist Investing Club PROLivestream Menu
- In December, Strategy established a U.S. dollar reserve, which now holds $2.25 billion, to ensure it can meet its obligations to pay dividends on its preferred stock and interest on its outstanding debt.
- The company has been funding its bitcoin purchases by issuing new equity and debt.
Livestream Menu Make Itselect USAINTLLivestream Search quotes, news & videos Livestream Watchlist SIGN INCreate free account Markets Business Investing Tech Politics Video Watchlist Investing Club PROLivestream Menu
Strategy's latest earnings release marks a subtle but meaningful shift in the company's approach to bitcoin: Instead of passively stockpiling bitcoin, it's going to more actively manage the balance sheet to maximize value of bitcoin per share.
That's a reversal from the company's longstanding "never sell" strategy, which originated with chairman, founder and bitcoin evangelist Michael Saylor – and it comes as the company posts a $12.5 billion net loss in the first quarter due to the slump in the bitcoin price during the beginning of the year.