Strategy funds dip buying through ATM equity sales, not cash flow. $1.44B reserve aims to calm forced seller concerns. Strategy just bought $980.3M in BTC, adding 10,645 BTC at $92,098 each, totaling 671,268 BTC. Model relies on public market financing to grow holdings quickly. Strategy treats BTC as balance sheet centerpiece, using metrics like BTC Yield to track progress. Bitcoin treasury model adopted in Sept. 2020. Funding purchases through capital markets, mainly by issuing securities. ATM program allows Strategy to sell stock over time for funding. Preferred shares and debt help scale Bitcoin exposure. Analysts describe it as a premium and leverage machine. Downturns function as accumulation periods for Strategy’s model. Strategy building $1.44B reserve to pay dividends and debt interest. Dilution, higher carrying costs, and index-rule pressure are constraints. Earnings can swing wildly due to new accounting guidance for crypto. Strategy’s relentless buying mechanism relies on selling paper, raising cash, and buying Bitcoin. Keeping an eye on ATM programs, USD Reserve, and index treatment of digital asset treasury companies is crucial.

Read more at Cointelegraph: How Strategy Buys Bitcoin in Downturns