MicroStrategy beefed up its cash buffer to $3.75 billion while keeping its Bitcoin stash untouched, according to a July 27 filing — a sign the company is prioritizing liquidity over further BTC accumulation for now.
Key takeaways
- Cash reserve: MicroStrategy increased its U.S. dollar reserve by $525 million to $3.75 billion. Management says that level provides roughly 2.1 years (about 25 months) of coverage for preferred-stock dividends based on the company’s own internal calculation. The filing notes this is a managerial measure and not a guarantee under all market conditions.
- Bitcoin holdings: The company’s Bitcoin balance remained unchanged at 843,775 BTC through July 26. The BTC reserve carries a purchase cost of $63.69 billion (including fees), an average buy price of $75,476 per coin.
- No new BTC buys: The July 27 disclosure also reported no Bitcoin purchases between July 20 and July 26, extending the recent pause in accumulation.
- Stock sales fueling cash: MicroStrategy sold 5,429,160 shares of MSTR common stock through its at-the-market (ATM) program during the week, netting $544.5 million in proceeds. The $3.75 billion reserve includes expected proceeds from shares that had not yet settled by July 26.
- Remaining fundraising capacity: After these sales, the company still has roughly $22.98 billion available under its MSTR stock-offering programs, giving it a ready path to raise additional cash if needed (though future issuance would dilute existing common shareholders).
- Preferred support actions: MicroStrategy repurchased 288,930 STRC preferred shares for $25 million during the week. It still has $975 million of repurchase authority under its preferred-stock buyback program and $1 billion under its common-stock repurchase program. No STRF, STRK, STRD or MSTR common shares were bought back during the period.
- Recent BTC sales history: The company is 3,588 BTC below the 847,363 coins it held in late June after selling that tranche for about $216 million between June 29 and July 5. Those sales followed a policy change allowing select Bitcoin sales to fund dividends, interest and reserve needs — a shift away from MicroStrategy’s long-running buy-and-hold accumulation strategy.
- Risk and modeling: MicroStrategy publishes an internal “BTC Rating” that models Bitcoin downside and coverage; the company said Bitcoin could fall 11.4% annually for 5.8 years and still preserve 1.0x coverage of net debt and preferred stock. The rating is proprietary and not assigned by an independent credit agency.
- Market context: JPMorgan previously indicated that building two to three years of cash coverage could reduce the risk MicroStrategy would need to sell Bitcoin to meet preferred dividends. The new 2.1-year figure falls within that range, though the company cautioned that refinancing costs, dividend rates, share prices and Bitcoin market moves could change the picture.
Why it matters
MicroStrategy remains the largest disclosed corporate holder of Bitcoin, but this filing shifts the narrative from accumulation to liquidity management. By directing recent ATM proceeds into cash and repurchasing some preferred shares, the company has increased its ability to meet scheduled distributions without immediately needing to sell more BTC. The cash isn’t legally ring-fenced in a separate account and dividends still require board approval, so the balance isn’t an ironclad guarantee — but it does reduce short-term pressure to monetize Bitcoin holdings.
What to watch next
Weekly Form 8-K updates will show whether MicroStrategy continues funneling stock-sale proceeds into cash or returns to buying Bitcoin. The company has not announced when it might resume BTC purchases.
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