Strategy chose to strengthen its overall cash position last week rather than add to its Bitcoin holdings, directing proceeds from common stock sales into its dollar reserve.
A July 13 Form 8-K showed that the company raised about $466.7 million while leaving its Bitcoin balance unchanged at 843,775 BTC. The transaction lifted Strategy’s USD Reserve by roughly $450 million to $3 billion.
The move extends a conservative phase in the company’s treasury management after its largest Bitcoin sale and attention on preferred-share obligations. Strategy has said the reserve is intended to support dividend payments on preferred stock and interest expenses on debt.
Strategy Keeps Bitcoin Holdings Unchanged
Strategy continues to hold 843,775 Bitcoin at an average purchase price of $75,476. The company has spent about $63.69 billion building the position.
With Bitcoin trading near $62,800 on Monday, the value of the holdings remained below Strategy’s average acquisition cost. Even so, the company still holds a large lead over the next biggest corporate Bitcoin owner.
Unlike the previous week, Strategy did not sell any Bitcoin during the reporting period. It instead raised cash through common stock sales, avoiding another reduction in the digital asset reserve.
Cash Reserve Supports Fixed Obligations
Strategy maintains fixed commitments linked to its preferred shares. The company has said its cash reserve supports dividend payments and interest on outstanding debt.
In late June, Strategy increased the annual dividend rate on its STRC preferred stock, known as Stretch, to 12%. The adjustment marked the eighth increase to the security’s payout rate.
STRC closed Friday at $87.48 on Nasdaq, below its $100 par value. Ripple CEO Brad Garlinghouse described the discount as “a pretty damning indictment” during a CNBC interview. He added that “financial engineering does not drive long-term value.”
Strategy Adjusts Bitcoin Accumulation Framework
The latest cash raise followed Strategy’s sale of 3,588 Bitcoin between June 29 and July 5. The company received about $216 million from the transaction, its largest Bitcoin disposal to date.
Michael Saylor confirmed the sale on X, stating that the Bitcoin was sold “to fund dividends on our Digital Credit securities.”
A late-June filing gave management authority to sell Bitcoin, repurchase shares, and maintain a formal dollar reserve. The framework included up to $1.25 billion for reserve building through Bitcoin monetization, alongside separate $1 billion repurchase programs for preferred and common shares.
Strategy used none of the authorized Bitcoin sale capacity last week. Instead, it relied on equity sales to increase cash.
MSTR traded about 3% lower before Monday’s market open. The stock closed Friday near $94.64, close to the lower end of its 52-week range, which had reached $457.22.
