What Did Benchmark Actually Say?Benchmark analyst Mark Palmer said in a note to clients Monday, cited by The Block, that Strategy’s decision to build cash reserves rather than buy Bitcoin reflects disciplined capital allocation, not a shift in its long-term approach.“The company has made clear that it remains a long-term buyer of bitcoin while strengthening its balance sheet,” Palmer wrote.The $3.75 billion reserve gives Strategy flexibility to fund preferred dividend obligations while keeping the option to resume Bitcoin purchases when conditions improve.Why Has Strategy Paused Bitcoin Buying For Five Weeks?Strategy has raised over $2.4 billion in five weeks without adding a single Bitcoin, directing proceeds toward its USD reserve and preferred stock obligations rather than accumulation. The reserve now covers roughly 2.1 years of preferred dividends, with the company needing to fund approximately $1.76 billion in annual preferred dividends and debt interest.Here is how the past five weeks broke down:
June 22–28 — Sold 12.67M shares, raised $1.15B, boosted reserve to $2.55B
June 29–July 5 — Sold 3,588 BTC for $216M to fund dividends
July 6–12 — Sold 4.82M shares, raised $466.7M, reserve to $3B
