Strategy went a fifth straight week without buying bitcoin, holding at 843,775 BTC while raising its US dollar reserve by $525 million to $3.75 billion. The company sold about 5.4 million MSTR shares for $544.5 million over the week and repurchased $25 million of its STRC preferred stock.
Bitcoin treasury company Strategy made no bitcoin purchases or sales in the week to July 26, holding its stack at 843,775 BTC, according to an 8-K filing with the Securities and Exchange Commission on Monday. The pause marks a fifth straight week without a purchase, extending a shift toward share sales and reserve building since the firm's last buy of 520 BTC on June 22.
Instead of accumulating, the firm raised its USD reserve by $525 million, confirming a balance of $3.75 billion as of July 26, up from the $3.225 billion disclosed as of July 19. The reserve supports dividend payments on its preferred stock and interest on its debt, and the company said it now covers about 2.1 years of dividend obligations.
Share sales fund the cash build
The cash came from equity. Strategy sold 5,429,160 shares of its Class A common stock through its at-the-market offering program between July 20 and July 26, generating $544.5 million in net proceeds. It also repurchased 288,930 shares of its STRC preferred stock for $25 million under the digital credit securities repurchase program it launched in June.
Cointelegraph framed the growing cash pile as management's effort to maintain liquidity while it expands its capital markets activity through common stock offerings and preferred stock instruments.
Holdings carry paper losses at current prices
Strategy holds 843,775 BTC — worth around $54 billion — bought at an average price of $75,476 per bitcoin for a total cost of around $63.69 billion including fees and expenses. Those holdings are equivalent to more than 4% of bitcoin's 21 million supply cap, but carry billions of dollars in paper losses at current prices.
MSTR and STRC were each higher by about 2.5% pre-market as bitcoin rose to $65,000 over the weekend. Before that, Strategy's stock had fallen 2.1% on Friday.
Saylor hints at another move
Despite the pause, Saylor had posted another bitcoin acquisition tracker chart to X on Sunday with a caption, according to The Block: "We're gonna need another color." Similar posts have typically preceded bitcoin acquisition announcements the following day, though the company's activity had varied in recent weeks.
President and CEO Phong Le said in a Bloomberg TV interview that Strategy intends to remain a long-term buyer of bitcoin despite its recent sales. Le said the company would begin considering risks associated with its debt only if bitcoin falls to around $8,000 to $10,000, adding that it currently feels very secure about its balance sheet.
Sources: Strategy, The Block, Cointelegraph, CoinDesk
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