Strategy builds cash reserve and pauses Bitcoin purchases

Core Insights - The company has shifted its focus from aggressive Bitcoin buying to managing cash reserves due to a challenging year, with stock down nearly 50% year to date [1] - The company disclosed a US dollar reserve of $2.2 billion, funded by selling shares to cover preferred dividends and debt interest, marking a significant change in strategy [2] - Historically, the company would increase its Bitcoin holdings during price dips, but this time it prioritized liquidity instead [2] Financial Position - The company holds over 671,000 Bitcoin at an average acquisition cost of approximately $75,000, with Bitcoin currently near $89,000, indicating a thinner cushion than before [3] - The Bitcoin yield turned negative this quarter, reflecting the company's current financial challenges [3] Market Dynamics - A decision by MCI on January 15th could lead to the company being removed from indexes, which may result in significant passive outflows estimated at $2.8 billion, potentially rising to nearly $9 billion if other index providers follow suit [4] - The chairman has defended the company's status as an operating business rather than a fund, highlighting its software business and digital credit securities issued this year, but market sentiment remains skeptical [5] - The premium that investors previously paid for the company's shares has largely diminished, indicating a loss of market confidence [5]