Rises Following $25 Million Preferred Share Buyback and $525 Million Cash Increase

TLDR

• Strategy stock rises after adding $525 million to its cash reserve
• Company repurchases $25 million of STRC preferred shares
• Bitcoin holdings remain unchanged at 843,775 BTC for fifth week
• MSTR share sales generate $544.5 million without selling Bitcoin
• Updated capital strategy focuses on boosting Bitcoin value per share

Strategy Inc. (MSTR) gained 5.45% to $96.67 after the company expanded its cash reserve and continued preferred share repurchases. The firm reported no Bitcoin purchases for a fifth consecutive week while raising fresh capital through common stock sales. Meanwhile, management increased liquidity, maintained its Bitcoin holdings, and continued executing its updated capital allocation strategy.

Strategy Inc, MSTR

Strategy Builds Cash Reserve While Bitcoin Holdings Remain Unchanged

Strategy increased its cash reserve by $525 million, bringing the balance to $3.75 billion during the week ending July 26. At the same time, the company kept its Bitcoin holdings unchanged at 843,775 BTC. Consequently, the buying pause became Strategy’s longest break from Bitcoin purchases in two years.

The company generated most of the additional liquidity through its at-the-market equity program. Strategy sold 5,429,160 MSTR common shares between July 20 and July 26. As a result, the sales produced $544.5 million in net proceeds without requiring any Bitcoin sales.

Management stated that the reserve now covers approximately 2.1 years of preferred dividend obligations and debt interest payments. The company estimated annual obligations at $1.76 billion. Therefore, the larger reserve strengthens liquidity while supporting future capital management activities.

Preferred Share Buyback Supports Capital Management Strategy

Strategy repurchased 288,930 STRC preferred shares during the reporting week for approximately $25 million. The transaction used funds from the company’s $1 billion Digital Credit Securities Repurchase Program. Consequently, $975 million remains available under that authorization.

The company completed no repurchases involving STRF, STRK, or STRD preferred securities during the same period. Likewise, Strategy did not repurchase any MSTR common shares. However, management retained the entire $1 billion authorization for future common stock buybacks.

STRC continued trading below its $100 par value after declining since mid-May. The preferred shares traded near $88.61 during pre-market activity while recovering modestly. Therefore, the discounted valuation created an opportunity for targeted repurchases under the company’s capital framework.

Updated Metrics Reflect Focus on Bitcoin Per Share

Strategy recently introduced a revised performance metric called net Bitcoin per share. The updated measure subtracts outstanding debt and preferred obligations from Bitcoin holdings. As a result, the calculation provides a different estimate of Bitcoin exposure available to common shareholders.

The company also updated its modified net asset value calculation using the revised methodology. Under the new formula, MSTR traded near 1.02 times net Bitcoin value. Consequently, issuing additional common shares below that level would reduce Bitcoin ownership per share.

Strategy adopted its current capital framework several weeks earlier. The plan allows up to $1.25 billion in potential Bitcoin sales if needed for reserves, dividends, or repurchases. The company has instead raised cash through equity issuance while preserving its entire Bitcoin position.

Executive Chairman Michael Saylor confirmed the latest reserve increase after the filing became public. He stated that Strategy held 843,775 BTC alongside the expanded $3.75 billion cash reserve. Meanwhile, the filing valued the Bitcoin portfolio at approximately $54.36 billion, remaining below its aggregate acquisition cost of $63.69 billion.

Strategy also disclosed substantial remaining fundraising capacity through its at-the-market programs. The company retained $22.98 billion available under its MSTR common stock program. Additionally, unused capacity remained across STRF, STRC, STRK, and STRD issuance programs, supporting future financing flexibility.