Strategy moved 411.5 bitcoin to Coinbase Prime on May 29, according to blockchain data from Arkham Intelligence, the same day the company said it was pausing new Bitcoin purchases and spending $1.38 billion to buy back a chunk of its convertible debt. The moves come as the firm's cash pile shrinks to roughly $871 million, down from $2.25 billion at the start of February, and as annual obligations of about $1.66 billion loom.
Two transactions, one address format
The transfers — one for 205.3 BTC, the other for 206.2 BTC — were sent from a P2SH address starting with '3', a departure from Strategy's usual Native SegWit addresses that begin with 'bc1q'. The company didn't comment on the change, but the shift in address style could signal a new wallet structure or a one-off transaction. The exchange didn't immediately respond to a request for confirmation on whether the coins were deposited for sale or custody.
Cash burn and the note buyback
Strategy's cash reserves now cover roughly 6.3 months of its annualized obligations, even after the convertible note repurchase. The company used $1.38 billion in cash to buy back $1.5 billion of its 0% convertible senior notes due 2029, a move that reduces future dilution but burns through liquidity. On top of that, the firm faces $1.23 billion in annual dividend payments on its STRC preferred stock, which carries an 11.5% rate. That preferred stock has traded below par since mid-May, a sign investors are nervous about the payout.
What happens to the Bitcoin treasury
Strategy still holds 843,738 BTC, the largest corporate bitcoin stack by a wide margin. But the cash crunch raises questions about how long the company can keep buying — or even holding — without selling. Crypto analyst Ragnar suggested on X that Strategy may offload higher-cost lots, pointing to 220 BTC bought at $123,561 per coin as a candidate. Selling those at a loss would hurt the balance sheet but could replenish cash. The company hasn't signaled any intention to sell its core holdings.
The timing isn't great
The pause on purchases comes at a moment when bitcoin's price has been volatile, and the preferred stock dividend burden is only getting heavier. Strategy's next quarterly dividend payment on the STRC shares is due in August. With cash running low and no new bitcoin buys planned, the pressure is on to either raise capital or cut costs. The note repurchase helps, but it also ate a big chunk of the remaining war chest. Investors will be watching the next earnings call for any hints on how Saylor plans to square the circle.
