Strategy piles up cash to $3.75B as Bitcoin buying stays on hold
Strategy boosted its U.S. dollar reserve by $525 million to $3.75 billion while holding its Bitcoin stash steady at 843,775 BTC, the company disclosed in a July 27 filing. Management says the cash balance now provides about 2.1 years of coverage for preferred-stock dividends under the company’s internal reserve policy — a management calculation that the filing notes is not a guarantee of payments in all market conditions.
Key figures
- BTC holdings: 843,775 BTC (unchanged through July 26).
- USD reserve: $3.75 billion (+$525 million).
- Purchase cost of Bitcoin reserve: $63.69 billion (including fees), average price $75,476 per BTC.
- Dividend coverage: 2.1 years (about 25 months) per company metric.
- Outstanding capacity under MSTR programs: ~$22.98 billion.
How the cash was raised
Between July 20 and July 26 Strategy sold 5,429,160 shares of MSTR common stock through its at-the-market (ATM) program, generating $544.5 million in net proceeds. The company did not sell any STRF, STRC, STRK or STRD preferred shares during the period. The reported $3.75 billion reserve includes expected proceeds from shares that had not yet settled by July 26.
Capital returns and repurchases
Strategy repurchased 288,930 STRC preferred shares for $25 million during the week and retains $975 million of authority under its preferred-stock repurchase program and $1 billion under its MSTR common-stock repurchase program. No MSTR common shares were repurchased during the reporting week.
Pause in accumulation
The Bitcoin balance remained unchanged, extending the company’s pause in accumulation. Strategy’s BTC total is still 3,588 coins below the 847,363 BTC held in late June; those coins were sold between June 29 and July 5 for roughly $216 million after the company adopted a framework permitting selected Bitcoin sales to fund dividends, interest and reserves. Weekly filings show this shift from a long-running accumulation model toward prioritizing liquidity: instead of buying BTC, the company has directed fresh common-stock proceeds into cash.
Why it matters
Strategy continues to hold the largest disclosed corporate Bitcoin reserve, but the narrative in this update centers on liquidity management rather than further accumulation. The larger cash cushion reduces immediate pressure to sell Bitcoin or issue shares solely to meet scheduled distributions. That aligns with prior analyst commentary — JPMorgan had said that building two to three years of cash coverage could ease concerns that the company might need to liquidate BTC to fund preferred dividends; the new 2.1-year figure sits inside that range.
Risk and caveats
The filing reiterates that the reserve was created to support preferred dividends and interest on debt and that the 2.1-year coverage is a management calculation based on current obligations. The cash is not placed in a separate legal escrow, and the board still controls dividend decisions. Strategy also highlighted its internally created “BTC Rating,” a model that — under a scenario where Bitcoin falls 11.4% annually for 5.8 years — still maintains 1.0x coverage of net debt and preferred stock. The company stresses this is its own metric and has not been issued by any independent credit agency.
What to watch next
Strategy hasn’t said when it will resume Bitcoin purchases. Future weekly disclosures will reveal whether the company continues directing ATM proceeds into cash or returns to buying Bitcoin. For now, the message is clear: build liquidity first, accumulation second.
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