Strategy has raised its U.S. dollar cash reserve by $525 million to a total of $3.75 billion, maintaining a buffer that currently covers approximately 2.1 years of preferred stock dividends. Despite this substantial cash buildup, the company’s Bitcoin holdings remain steady at 843,775 BTC, with no purchases made during the week ending July 26.
Stock Sales Fuel Cash Increase
The surge in cash reserves was largely driven by sales of 5,429,160 shares of Strategy's common stock, which garnered $544.5 million net. These sales were executed through the company’s at-the-market program and extended the coverage for preferred dividends beyond two years based on the firm’s internal reserve policy. However, it’s important to note this calculation doesn’t guarantee dividend payments under certain market conditions.
Strategy also repurchased $25 million worth of its STRC preferred shares but refrained from buying back any other preferred or common shares in the same period. This preference stock buyback suggests targeted capital allocation to support preferred securities while shoring up the cash position for dividends and debt interest.
Bitcoin Reserve Pauses Growth
No Bitcoin acquisitions occurred between July 20 and July 26, continuing the company's recent pause on expanding its crypto holdings. The Bitcoin reserve is valued at a purchase cost of $63.69 billion, averaging about $75,476 per coin, including fees. Strategy’s remaining capacity under its stock offering programs stands at nearly $23 billion, providing flexibility to raise funds further if market conditions allow.
This cautious approach contrasts with earlier weeks when Strategy raised $466.7 million via share sales but opted to hold rather than increase its BTC holdings. By strengthening its cash cushion, the company appears to prioritize sustaining dividend obligations over aggressive Bitcoin accumulation for now.
This material is for informational purposes only and does not constitute financial advice.
