Strategy Adds $525M to Cash Reserve, Continues Bitcoin Buy Pause for Fifth Week
Bitcoin treasury firm Strategy added $525 million in cash reserves by selling shares of MSTR common stock through its at-the-market program between July 20 and July 26. The company has now gone five consecutive weeks without purchasing additional Bitcoin, maintaining a holdings total of 843,775 BTC since June 22. Strategy's reserve is sufficient to cover two years of dividend payments against annual obligations totaling $1.76 billion in preferred dividends and debt interest. The firm also executed its first buyback under the Digital Credit Securities Repurchase Program by repurchasing 288,930 shares of Stretch (STRC) for $25 million. STRC has traded below par value since mid-May but is currently up slightly in pre-market trading at $88.61 per share. Strategy's capital management strategy involves selling MSTR stock to raise cash rather than liquidating Bitcoin holdings, which it uses to fund dividends and repurchases while diluting common shareholders. The company recently introduced a new metric called 'net Bitcoin per share,' adjusting for debt and preferred claims to better reflect the value attributable to common shareholders. Strategy's current stack of BTC is valued at $8.5 billion below its original purchase cost, with Bitcoin trading around $65,000.
Topics: cash reserve dividend coverage preferred stock buyback stock sales