Key Takeaways:
- Strategy raised $544.5M selling 5.43M MSTR shares via its ATM program
- Company bought back $25M of STRC preferred stock, its first such repurchase
- USD reserve grew to $3.75B, covering 2.1 years of dividend and debt payments
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Strategy raises $544.5M via stock sale, buys back $25M in STRC
Strategy raised $544.5 million selling MSTR common stock and bought back $25 million of its preferred shares last week, boosting its cash reserve to $3.75 billion while leaving its 843,775 Bitcoin holdings untouched.
"The capital management framework gives us flexibility to support our preferred dividends and debt obligations while preserving our Bitcoin reserve," Michael Saylor, executive chairman of Strategy, said in a social media post on Sunday hinting at further preferred stock moves.
The company sold 5,429,160 shares of Class A common stock through its at-the-market program between July 20 and July 26, generating $544.5 million in net proceeds, according to a Form 8-K filed with the SEC on Monday. Strategy also repurchased 288,930 shares of its STRC preferred stock for $25 million — its first buyback under a $1 billion authorization approved June 29, leaving $975 million of capacity remaining.
The $3.75 billion USD reserve now covers 2.1 years of dividend payments against the $1.76 billion Strategy owes each year in preferred dividends and debt interest. The company has $22.98 billion of MSTR issuance capacity left under its ATM program. STRC shares, which have traded below their $100 par value since mid-May, rose 1.99% in pre-market trading to $88.61.
Strategy's Bitcoin buying pause extended to a fifth straight week, its longest stretch in two years. The company last added to its stack on June 22, purchasing 520 BTC for $35 million. Bitcoin traded at around $65,000 on Monday, putting Strategy's $63.69 billion aggregate cost basis roughly $8.5 billion underwater.
The shift in capital allocation dates to a new framework adopted weeks ago that authorized selling up to $1.25 billion of Bitcoin to top up reserves, cover dividends and fund repurchases. Strategy has instead raised cash by selling MSTR stock, padding its reserve from $3 billion to $3.75 billion while diluting common shareholders. On prediction market Myriad, users place just a 12% chance on Strategy holding over 1 million BTC by year-end, down from 14% a month ago.
The growing cash reserve signals that Strategy is prioritizing liquidity and dividend coverage over aggressive Bitcoin accumulation in the near term. With $22.98 billion of MSTR issuance capacity remaining and a $975 million preferred buyback authorization still available, the company retains significant firepower for future deployment — whether toward additional Bitcoin purchases or further capital structure optimization.
This article is for informational purposes only and does not constitute investment advice.
[1] Strategy Raises $544.5M and Buys Back STRC Shares[2] Strategy Raises $544.5 Million via ATM Stock Sale, Buys No Bitcoin[3] Strategy Adds $525M to Cash Reserve, Skips Bitcoin Buy for Fifth Week[4] Strategy updates ATM sales, repurchase activity and $3.75B USD reserve; 5.43M Class A shares sold - TradingView
