Strategy Pads Cash Reserves to $1.4 Billion After STRC Sinks to Record Lows

Strategy reported Monday that it raised its USD reserve by $300 million to $1.4 billion, sourcing the funds from common stock sales that generated $335 million in gross proceeds. The move marks the firm’s third straight weekly cash build and reflects a deliberate effort to stabilize investor confidence in its preferred stock program after a turbulent few weeks that prompted Strategy to pause the at-the-market program it uses to issue new STRC shares, temporarily disabling the mechanism that has funded the bulk of its bitcoin purchases this year.

STRC, Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, engineered to trade near its $100 par value, sank to an intraday low of $82.53 on June 19 roughly 17% below par before recovering to around $91 on Monday.

Strategy simultaneously disclosed a bitcoin purchase of 520 BTC for approximately $35 million, its smallest acquisition since it sold 32 BTC three weeks ago. Total holdings now stand at 847,363 BTC, valued at roughly $55 billion at current prices, though the position carries an estimated $9 billion in unrealized losses. STRC’s costs, at an 11.5% annual dividend on a large outstanding balance, now generate approximately $100 million in monthly obligations for the firm, making the cash reserve its most closely watched financial metric. In prior analysis of STRC’s mechanics, Unchained flagged that the instrument’s flywheel works only as long as the stock holds near par.

Competitor Strive outpaced Strategy’s bitcoin accumulation this week, reporting a purchase of 750 BTC to bring its holdings to 19,864 BTC. Strive CEO Matt Cole said Friday’s market action was a forced liquidation event in which weakness in STRC spilled over into Strive’s comparable preferred stock, SATA. “Friday was the most significant stress test Digital Credit has faced so far,” Cole wrote on X. “The market absorbed it, buyers emerged, and both securities recovered substantially from their lows.” SATA rose 0.6% to $98.26 on Monday; Strategy’s common shares gained 3.8% to $116.60.

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