Strategy added $525 million to its USD Reserve between July 20 and July 26, bringing the total to $3.75 billion, while skipping Bitcoin purchases for a fifth consecutive week. The Bitcoin treasury firm sold 5,429,160 shares of MSTR common stock through its at-the-market program, generating $544.5 million in net proceeds, with Bitcoin holdings remaining unchanged at 843,775 BTC since a June 22 purchase. The reserve now covers 2.1 years of the $1.76 billion in preferred dividends and debt interest Strategy owes annually. The pause marks Strategy's longest period without Bitcoin acquisitions in two years, following the firm's adoption of a capital management framework that authorized selling up to $1.25 billion of Bitcoin to fund reserves, dividends, and share repurchases.
Strategy Sells $544.5M MSTR Stock Between July 20-26
Strategy sold 5,429,160 shares of MSTR common stock through its at-the-market program between July 20 and July 26, generating $544.5 million in net proceeds, the company announced. The stock sale added $525 million to the firm's USD Reserve after accounting for transaction costs. Strategy's Bitcoin holdings remained at 843,775 BTC, untouched since a purchase of 520 BTC for $35 million disclosed on June 22. The firm has $22.98 billion of MSTR stock sale capacity remaining under its authorized program.
USD Reserve Reaches 2.1 Years Dividend Coverage
The USD Reserve balance of $3.75 billion now covers 2.1 years of Strategy's annual obligations, which total $1.76 billion in preferred dividends and debt interest. The reserve increased from $3.225 billion reported in the previous week's filing. Strategy stated the reserve provides a financial buffer against the firm's fixed payment commitments to preferred shareholders and debt holders.
Strategy Completes First STRC Buyback Under $1B Authorization
Strategy purchased 288,930 shares of its Stretch (STRC) preferred stock for $25 million, marking the first buyback under the $1 billion Digital Credit Securities Repurchase Program approved by the board on June 29. The purchase leaves $975 million available under the STRC repurchase authorization, alongside an untouched $1 billion authorization for common stock buybacks. STRC has traded below its $100 par value since mid-May, reaching record lows earlier this month. Per Yahoo! Finance, STRC traded at $88.61 in pre-market trading, up 1.99%.
Capital Management Framework Drives Cash Accumulation Strategy
The shift to cash accumulation dates to the capital management framework Strategy adopted weeks ago, which authorized selling up to $1.25 billion of Bitcoin to top up reserves, cover dividends, and fund repurchases. Strategy has since raised cash by selling MSTR stock rather than coins, padding the reserve to $3 billion and then $3.225 billion while diluting common shareholders. The firm overhauled its investor metrics last week, debuting "net Bitcoin per share," which strips out $22.2 billion of debt and preferred claims to show what common holders own. Strategy also redefined mNAV against that figure, fixing the accretion threshold at 1.0x. Bitcoin traded at around $65,000 on Monday, per CoinGecko data, putting Strategy's stack $8.5 billion below the $63.69 billion it paid. The company reports second-quarter earnings on Thursday. On prediction market Myriad, owned by Decrypt's parent company Dastan, users place a 12% chance on Strategy holding over 1,000,000 BTC by year's end, down from 14% a month ago.
FAQ
What did Strategy do with its cash reserve between July 20 and July 26?
Strategy added $525 million to its USD Reserve, bringing the total to $3.75 billion. The firm sold 5,429,160 shares of MSTR common stock through its at-the-market program, generating $544.5 million in net proceeds.
Why did Strategy buy back STRC preferred stock?
Strategy purchased 288,930 STRC shares for $25 million under the $1 billion Digital Credit Securities Repurchase Program approved on June 29. STRC has traded below its $100 par value since mid-May, making the buyback the firm's first use of the authorization.
How long has Strategy gone without buying Bitcoin?
Strategy skipped Bitcoin purchases for a fifth consecutive week, with holdings unchanged at 843,775 BTC since a June 22 purchase of 520 BTC for $35 million. The pause marks the firm's longest period without Bitcoin acquisitions in two years.
