Over the past week, Strategy Inc. increased its cash reserves by $525 million but surprisingly made no Bitcoin acquisitions, marking the fifth consecutive week without any BTC purchases. The firm sold 5.4 million shares of its own stock, MSTR, generating $544.5 million in proceeds, as revealed in a recent Form 8-K filing.
Michael Saylor, Strategy’s executive chairman, confirmed this update on X, announcing that the company now holds enough cash to cover 2.1 years of dividend and interest payments. Strategy's total USD reserve stands at $3.75 billion following this maneuver.
The cash increase came despite prior signals from Saylor featuring a colorful tracker chart that usually hinted at new cryptocurrency acquisitions. Instead, the firm used the capital to repurchase 288,930 shares of its preferred stock (STRC) for $25 million, showing a clear focus on cash reserves rather than expanding its Bitcoin holdings.
This cautious approach comes as Strategy holds 843,775 Bitcoin, with a current market value around $54 billion but reflecting over $8 billion in paper losses. Bitcoin advocate and critic Peter Schiff slammed the decision, tweeting that selling discounted MSTR shares to raise cash and buy back preferred stock damages shareholder value more than selling some Bitcoin would.
Schiff argued that these moves reduce the Bitcoin per share ratio, undermining the rationale for owning MSTR stock and disappointing long-term investors. Strategy’s Q2 earnings are due on July 30th, with expectations of a 6.4% rise to $121.88 million, a report market participants are watching closely.
Following the announcements, MSTR shares jumped 6.44% to $97.46, reflecting investor approval of the cash build-up despite no Bitcoin buys. This strategy contrasts with recent trends among crypto firms which often reinvest in digital assets during market dips.
