Strategy Doesn’t Buy BTC For Fourth Straight Week - Sells $263M of MSTR Shares

Strategy has announced a further expansion of its cash holdings in a new 8-K filing with the SEC. Continuing its recent trend, the firm raised roughly $263.5 million in net proceeds by selling MSTR common stock through its at-the-market (ATM) programme.

Proceeds from the sale of the shares were then added to Strategy’s USD reserve, which now sits at $3.225 billion.

Strategy did not purchase any additional BTC during this period, marking the fourth straight week without a Bitcoin acquisition.

Why is Strategy Building a Cash Buffer?

Strategy currently faces roughly $1.76 billion in annual interest and dividend obligations linked to its various preferred stock classes. Strategy's Perpetual preferred stock (STRC) has been trading under par ($100) since the middle of May. 

Strategy announced a Digital Credit Capital Framework on 29 June. This framework established a formal USD reserve policy, authorized up to $1 billion each in buybacks for its preferred and common stock, and introduced a BTC Monetisation Programme allowing it to sell up to $1.25 billion of bitcoin to top up reserves, cover dividends, or fund repurchases.

Strategy also lifted the STRC dividend to 12% from 11.5%, effective 1 July, in a bid to pull the price back toward par. By continuing to bump its cash reserves via MSTR share sales, Michael Saylor has secured an even longer runway.

Tracking Strategy's Holdings

Strategy’s BTC stack sits at 843,775 BTC, worth around $55 billion. Average purchase price is just over $75K for a total cost of $63.7 billion. Strategy is sitting on $9 billion of paper losses.

Despite the month-long pause in buying, Strategy remains the largest corporate Bitcoin holder globally. You can track Strategy on Arkham using the de-anonymized Strategy entity. 

Arkham has de-anonymized the vast majority of Strategy's corporate BTC wallets. You can set real-time alerts and track their treasury transactions directly on the platform.