Michael Saylor’s Strategy has paused fresh Bitcoin purchases while raising its U.S. dollar reserve to $3 billion, shifting attention toward liquidity, preferred-share pressure, and the company’s next funding move.
Strategy Builds Cash Instead of Buying Bitcoin
Strategy, formerly MicroStrategy, increased its U.S. dollar reserves by $450 million in its latest SEC filing. The company raised about $467 million through MSTR common stock sales under its at-the-market program during July 6 to July 12.
The company did not buy more Bitcoin during that period. Its Bitcoin holdings stayed just under 844,000 BTC, worth about $53 billion at recent prices.
The move breaks from Strategy’s usual pattern of using fresh capital to expand its Bitcoin stack. The firm has not announced a new Bitcoin purchase since late June.
The larger reserve also gives Strategy more room to manage its capital structure. The company faces about $1.76 billion in annual interest and dividend obligations tied to its preferred shares.
STRC Recovery Shapes Bitcoin Buying Plan
Speaking to Bloomberg TV, Strategy CEO Phong Le said the company could resume Bitcoin purchases once its preferred shares recover. He pointed to Stretch, or STRC, which has traded below its $100 par value for weeks.
Le said, “When Stretch gets back to par, we’ll issue more. We’ll buy Bitcoin. We may continue to beef up our U.S. dollar reserve.” He also said he was “unsure” how long that recovery may take.
STRC recently traded around $87 to $89, below the level where new issuance becomes more attractive. Selling preferred shares under par can weaken the economics of raising capital for Bitcoin purchases.
Source: Arkham
Le said preferred issuance remains “a big part of our capital plan” because it can support Bitcoin per share growth. That makes STRC’s recovery central to Strategy’s next buying phase.
Cash Buffer Eases Dividend Pressure
Strategy held about $1.4 billion in U.S. dollar reserves only weeks earlier. Raising that balance to $3 billion gives the company enough liquidity to cover roughly two years of dividend payments.
The company announced a Digital Credit Capital Framework on June 29. That plan included a formal dollar reserve policy and up to $1 billion each in preferred and common stock buybacks.
The framework also allows Strategy to sell up to $1.25 billion of Bitcoin. Those proceeds could support reserves, cover dividends, or fund repurchases when needed.
Le pushed back against concerns that Strategy is stepping away from Bitcoin. He said, “We’re not going anywhere,” and added that “anybody that’s worried about Strategy shouldn’t be.”
Strategy recently sold $216 million worth of Bitcoin, but Le said that sale “did not move the market.” He also said Bitcoin trades between $30 billion and $40 billion daily, making Strategy only one part of a much larger market.