Strategy raised another $263.5 million by selling Class A common stock while leaving its Bitcoin holdings unchanged for a second straight week.
Summary
- Strategy raised $263.5 million through MSTR sales while keeping its Bitcoin holdings unchanged this week.
- Strategy increased its U.S. dollar reserve to $3.225 billion to support dividends and debt obligations.
- STRC valuation debate continues as investors assess cash flows, leverage, dividend coverage and Bitcoin exposure.
The company sold 2,732,318 MSTR shares between July 13 and July 19 through its at-the-market program, according to a July 20 filing with the U.S. Securities and Exchange Commission. Strategy reported no sales under its STRC, STRF, STRK or STRD preferred stock programs during the period.
Strategy also made no Bitcoin purchases or sales during the week. Its holdings therefore remained at 843,775 BTC, acquired for about $63.69 billion at an average cost of $75,476 per Bitcoin, including fees and expenses. The company’s official Bitcoin tracker confirms the same total.
MSTR sales push cash reserve above $3.2 billion
The latest share sales lifted Strategy’s U.S. dollar reserve to $3.225 billion as of July 19. The figure includes expected proceeds from ATM sales that had not yet settled by the reporting date. Strategy uses the reserve to support preferred stock dividends and interest payments on outstanding debt.
The company still had about $23.53 billion available under its MSTR ATM program after the latest transactions. It also reported no share repurchases during the week, despite having previously authorized programs covering both common and preferred securities.
The latest capital raise follows an even larger stock sale in the prior week. As crypto.news reported, Strategy raised $466.7 million by selling about 4.82 million MSTR shares between July 6 and July 12. Its Bitcoin holdings also remained unchanged at 843,775 BTC during that period, while the U.S. dollar reserve reached $3 billion.
Together, the two weekly updates show Strategy continuing to raise cash through common equity without adding to its Bitcoin position. The company has now increased its reserve by $675 million since July 5, when it reported $2.55 billion in cash after a separate Bitcoin sale.
Bitcoin holdings remain unchanged after earlier sale
Strategy’s current 843,775 BTC balance follows the sale of 3,588 Bitcoin between June 29 and July 5. The company raised about $216 million from that transaction and said the proceeds would support payments tied to its Digital Credit securities. Crypto.news reported at the time that the sale reduced Strategy’s holdings to their present level.
That transaction followed Strategy’s introduction of a broader Digital Credit Capital Framework. The plan gives the company authority to sell up to $1.25 billion in Bitcoin under certain conditions, primarily to strengthen its U.S. dollar reserve and meet dividend, interest and other capital needs. The authorization does not require Strategy to sell the full amount.
As previously reported by crypto.news, the framework also included $2 billion in authorized repurchases across common and preferred securities. Strategy also raised STRC’s annual dividend rate to 12% from 11.5%, effective from July.
For now, Strategy has chosen common stock sales rather than further Bitcoin sales to add liquidity. The company’s current Bitcoin balance remains below the 847,363 BTC it held before its July transactions, while its cash reserve has continued to rise.
STRC valuation debate continues as shares trade below par
The latest filing comes as investors continue to assess Strategy’s preferred stock structure. STRC closed at $85.29 on July 17, well below its $100 reference value, while MSTR ended the same session at $94.85, according to Yahoo Finance historical data.
Credit investor Khing Oei argued that investors may be placing too much weight on STRC’s current headline yield when valuing the security. “Never value a stream by dividing this year’s coupon by today’s price,” Oei wrote, arguing that investors should instead examine expected future cash flows and Strategy’s ability to fund distributions. His assessment represents his own valuation view rather than company guidance.
Strategy has already changed STRC’s payment structure as part of its effort to support the security. As crypto.news reported in June, the company moved toward semi-monthly STRC dividend payments while the shares continued trading below their $100 reference level.
The growing U.S. dollar reserve gives Strategy more cash available to service those obligations without immediately selling additional Bitcoin. However, dividend costs, debt interest, future capital raises and Bitcoin prices remain factors investors are tracking when assessing the company’s securities and treasury structure.
Strategy’s latest filing shows that common equity remains a large source of available financing. After raising $263.5 million during the week, the company retained approximately $23.53 billion of capacity for additional MSTR sales under its ATM arrangements.
The company has not indicated when it will use that remaining capacity or when it could resume buying Bitcoin. Its last two weekly filings showed no Bitcoin acquisitions, while its U.S. dollar reserve rose from $3 billion to $3.225 billion.
