Strategy Raises $263.5 Million and Adds It All to Cash as Its Bitcoin Buying Pause Enters a Second Week
Michael Saylor’s Strategy sold 2,732,318 shares of its Class A common stock for $263.5 million last week and directed the proceeds to cash rather than bitcoin, according to a Monday filing with the Securities and Exchang...
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Michael Saylor’s Strategy sold 2,732,318 shares of its Class A common stock for $263.5 million last week and directed the proceeds to cash rather than bitcoin, according to a Monday filing with the Securities and Exchange Commission. The move lifted the company’s US dollar reserve to $3.225 billion as of July 19, up from $3 billion a week earlier.
Strategy reported no bitcoin purchases for the second consecutive week, leaving its holdings unchanged at 843,775 BTC. The filing said the reserve exists to support dividends on the company’s preferred stock and interest on its debt. Strategy also made no share repurchases under the buyback programs it authorized last month.
For a company that built its identity on buying bitcoin with nearly every dollar it raised, parking fresh equity proceeds in cash is a meaningful change in posture. The shift follows a new capital framework Strategy adopted last month, which set a floor of at least 12 months of dividend coverage. The dollar reserve has now more than doubled from about $1.44 billion in late June.
MSTR has fallen over 40% this year and nearly 80% over the past year, and its variable-rate STRC preferred stock trades near $87, below the $100 level it was engineered to hold. Strategy’s shares recently traded at roughly 1.03 times the value of its net assets, stripping out much of the premium that once powered its fundraising.
Strategy remains the largest corporate holder of bitcoin, with a position bought at an average price of $75,476 per coin, well above where bitcoin trades today. Saylor has reframed his longtime “never sell” stance as a pledge to stay a net buyer.
Related Listen: Strategy Sold More Bitcoin. Is This a Betrayal of the Bitcoin Ethos?
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