MicroStrategy Halts Bitcoin Buys, Raises $335.5 Million to Boost Cash Reserve
MSTR•Crypto market cap fell 2.65% to $2.12 trillion as Nasdaq losses dragged Bitcoin below its 20-day EMA at $62,447, prompting CryptoQuant to advise pausing new purchases. MicroStrategy halted fresh Bitcoin buys recently and raised $335.5 million through stock sales to boost its cash reserve to $1.4 billion.
1. Crypto Market Drop Triggers Pause Recommendation
The total crypto market cap dropped 2.65% to $2.12 trillion as a sharp Nasdaq selloff pulled Bitcoin below its 20-day EMA at $62,447. This tech-driven correction led CryptoQuant to urge MicroStrategy to pause new Bitcoin purchases and rebuild cash buffers.
2. CryptoQuant Highlights Financial Risks
CryptoQuant flagged that MicroStrategy’s annual dividend obligations have nearly quadrupled to $1.2 billion while its US dollar reserve fell 38%. The firm’s variable-rate preferred stock slid to $82.50, widening the gap to par and cutting dividend coverage toward critical levels.
3. MicroStrategy Shifts to Cash Reserves
MicroStrategy halted fresh Bitcoin buys two weeks ago, acquiring just 520 BTC for about $35 million. It raised $335.5 million via common stock sales and routed funds into its treasury, lifting the cash reserve to $1.4 billion to shore up liquidity.
