Key Takeaways
- Michael Saylor published Strategy’s Bitcoin acquisition chart on Sunday with the message “We’re gonna need another color” — marking his fifth teaser post since the company’s most recent confirmed Bitcoin acquisition on June 22.
- The company has gone four consecutive weeks without purchasing Bitcoin, representing its longest buying drought in two years.
- MSTR shares finished Friday’s session at $91.67, declining from the previous week’s close of $94.85.
- The firm maintains 843,775 BTC purchased at an average price of $75,476, creating an unrealized loss of approximately $8.6–$9.3 billion with Bitcoin trading around $64,600–$65,000.
- Second-quarter earnings are scheduled for release after U.S. markets close on Thursday, July 30.
On Sunday, July 26, Michael Saylor shared Strategy’s Bitcoin purchase chart on X, accompanied by the cryptic message “We’re gonna need another color.” This marked the fifth occasion he’s posted similar content since June 22, when the company last confirmed a Bitcoin acquisition.
The message generated significant engagement, receiving more than 11,000 likes and attracting 1,400 responses. Saylor provided no additional context, and Strategy has not announced any new transactions.
Shares of MSTR concluded Friday’s trading at $91.67, representing a decline from the $94.85 closing price recorded the prior Friday.
Strategy’s Bitcoin treasury consists of 843,775 BTC accumulated through 113 separate acquisition events, with an average purchase price of $75,476 per coin totaling $63.69 billion invested. Given Bitcoin’s current trading range near $64,600–$65,000, the company’s holdings carry an unrealized loss between approximately $8.6 and $9.3 billion.
For the past two years, when Saylor posted the company’s acquisition chart on Sunday, it typically signaled an incoming Monday Bitcoin purchase announcement. That predictable pattern has recently fallen apart. His June 28 chart post was followed by a new capital allocation framework rather than a purchase. The July 5 post came immediately before the company executed its largest-ever Bitcoin sale.
The color-themed messaging has historical precedent. In late November, Saylor mentioned “green dots” one day before Strategy revealed a 130 BTC acquisition alongside a $1.44 billion cash reserve. On January 4, he posted “Orange or Green?” teasing whether the next move would involve coins or cash.
The Reason Behind Strategy’s Acquisition Freeze
Strategy’s enterprise mNAV — the metric comparing its market capitalization to its net Bitcoin position — dropped below 1 on June 27. When this ratio falls to that level, issuing stock to purchase Bitcoin no longer increases the Bitcoin-per-share metric. Instead, it creates dilution.
Preferred stock dividend obligations represent another constraining factor. The STRC preferred stock dividend rate was increased to 12% and requires cash payment. According to Julio Moreno, CryptoQuant’s head of research, Strategy’s dividend requirements have expanded approximately fourfold over six months to $1.2 billion, while the company’s dividend coverage has plummeted from over seven years down to approximately 14 months.
Strategy continues raising capital — the firm sold 2,732,318 MSTR shares generating net proceeds of $263.5 million during the period from July 13 through July 19 — but the funds are being allocated to reserves rather than Bitcoin purchases. The company’s dollar reserve currently totals $3.225 billion, providing coverage for roughly 1.8 years of dividend obligations.
The firm retains the ability to sell up to $23.53 billion in additional common stock through existing at-the-market facilities. The current pause represents a strategic decision.
Revised Capital Structure and mNAV Calculation
In late June, Strategy introduced a revised capital allocation framework establishing multiple uses for cash. The board authorized a $1 billion repurchase program for digital credit securities, a $1 billion common stock buyback program, and a Bitcoin Monetization Program permitting up to $1.25 billion in Bitcoin sales.
On July 23, Strategy modified its mNAV calculation methodology. The updated formula subtracts senior claims — encompassing perpetual preferred stock and out-of-the-money convertible debt — after netting the dollar reserve. The company cautioned that historical figures calculated using the previous method cannot be compared directly to the new calculation.
Strategy is scheduled to release its second-quarter financial results following the close of U.S. markets on Thursday, July 30.
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