TLDR
- MSTR stock fell 4.5% to $90.54 as Bitcoin dropped roughly 3% to around $62,260–$62,800.
- Strategy raised $466.7 million through common stock sales, bringing its USD reserve to $3 billion.
- Bitcoin holdings remain unchanged at 843,775 BTC, acquired at an average price of $75,476.
- The cash reserve is ring-fenced strictly to cover preferred stock dividends and debt interest payments.
- Strategy’s board has authorized up to $1.25 billion in Bitcoin sales to further support that reserve.
Strategy (MSTR) stock fell 4.5% to $90.54 on Monday, tracking a drop in Bitcoin, which slid roughly 3% over the past 24 hours to around $62,260.
The move came as Strategy disclosed it made no Bitcoin purchases or sales during the seven days ended July 12. Its holdings remain at 843,775 BTC, acquired at an aggregate cost of approximately $63.69 billion, or $75,476 per coin on average.
Instead of buying more Bitcoin, Strategy raised $466.7 million by selling common stock through its at-the-market equity program, pushing its U.S. dollar reserve to $3 billion.
That cash reserve has one job: covering annual dividend payments on preferred stock and interest on the company’s outstanding debt. It is not used for Bitcoin purchases.
The filing, submitted Monday, confirms that common stock remains a live funding tool for Strategy, even as the company has been expanding its capital-raising toolkit with preferred stock offerings.
Common Stock Back in the Mix
Strategy said in June it would sell its own stock opportunistically rather than continuously. The company’s “Stretch” preferred stock had been the primary vehicle for funding Bitcoin buys, but that engine slowed after Bitcoin’s price dropped and questions arose about the company’s ability to cover its dividend obligations.
The board has authorized up to $1.25 billion in Bitcoin sales to shore up the reserve. Strategy last sold Bitcoin at the start of July.
That authorization marked a clear shift. For years, Strategy under Michael Saylor operated on a strict buy-and-hold approach. The decision in June to allow selective Bitcoin sales was a material change in strategy—one Saylor himself acknowledged.
On Sunday, Saylor posted a chart to X showing Strategy’s historical Bitcoin purchase history. “Orange dots only tell part of the story,” he wrote, hinting at the broader financial picture the company is now trying to present.
What the Numbers Show
Strategy has not added to its Bitcoin stack in the most recent reporting week. The reserve sits at $3 billion. The stock is down pre-market. Bitcoin is below $63,000.
The company’s preferred stock dividend obligations require steady cash flow, and common stock issuance is currently one of the tools keeping that engine running.
Strategy’s latest regulatory filing does not indicate any planned Bitcoin purchases in the near term.
MSTR was trading at $90.54, down 4.5% on the session, as of Monday.
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