Strategy increased its U.S. dollar reserve by $525 million to $3.75 billion while keeping its Bitcoin holdings unchanged at 843,775 BTC.
Summary
- Strategy raised its cash reserve to $3.75 billion while keeping Bitcoin holdings unchanged at 843,775.
- Common stock sales generated $544.5 million, extending preferred dividend coverage to roughly 2.1 years overall.
- Strategy repurchased $25 million of STRC shares and made no Bitcoin purchases during the week.
The company said the cash balance now provides 2.1 years of coverage for preferred stock dividends. The calculation reflects Strategy’s own reserve policy and does not guarantee payments under all market conditions.
The July 27 disclosure also showed that Strategy made no Bitcoin purchases between July 20 and July 26. Its Bitcoin reserve carries a purchase cost of $63.69 billion, including fees and expenses, at an average price of $75,476 per coin.
Common stock sales fund the larger cash reserve
Strategy sold 5,429,160 shares of MSTR common stock through its at-the-market programme during the week. Those sales produced $544.5 million in net proceeds. The company sold no STRF, STRC, STRK or STRD preferred shares during the reporting period.
The Form 8-K said the $3.75 billion reserve includes expected proceeds from shares that had not settled by July 26. Strategy created the reserve to support preferred dividends and interest on outstanding debt. The company’s headline description of “2.1 years of dividend coverage” therefore represents a management calculation based on current obligations and the stated cash balance.
Strategy still had about $22.98 billion available under its MSTR stock offering programmes after the latest sales. That capacity gives the company another route to raise cash, although future issuance depends on market conditions and would increase the number of common shares outstanding.
Strategy buys back STRC but purchases no Bitcoin
Alongside the stock sales, Strategy repurchased 288,930 STRC preferred shares for $25 million. It retained $975 million of authority under its preferred-stock repurchase programme and another $1 billion under its MSTR common-stock repurchase programme.
The company did not buy back MSTR shares during the week. It also made no repurchases of STRF, STRK or STRD. The STRC transaction shows Strategy using part of its capital plan to support its preferred securities while it builds the dollar reserve used for distributions.
The unchanged Bitcoin balance extends the company’s pause in accumulation. As crypto.news reported on July 13, Strategy raised $466.7 million through MSTR sales during an earlier week while holding the same 843,775 BTC. Its reserve stood at $3 billion at that time. A later update placed the cash balance at $3.225 billion before the latest increase.
Bitcoin holdings remain below their June peak
Strategy’s current Bitcoin total remains 3,588 BTC below the 847,363 coins it held in late June. The company sold those coins for about $216 million between June 29 and July 5 after adopting a framework that allowed selected Bitcoin sales to fund dividends, interest and reserve needs.
As previously reported, the sales marked a change from Strategy’s long-running accumulation model. The company then stopped buying Bitcoin and directed fresh common-stock proceeds toward cash. The latest filing shows no new Bitcoin sale, leaving the reserve unchanged at 843,775 BTC through July 26.
The company still holds the largest disclosed corporate Bitcoin reserve. However, the July update centres on liquidity rather than further accumulation. Strategy’s latest action increased direct cash coverage while reducing the immediate need to sell Bitcoin or raise new funds solely to meet scheduled distributions.
Dividend coverage remains a company estimate
Strategy describes its reserve as money intended to support dividends on preferred stock and interest on debt. At $3.75 billion, the balance equals about 25 months under the company’s current coverage measure. The filing does not lock the cash into a separate legal account or remove the board’s role in approving dividends.
Recent related coverage also examined Strategy’s internal BTC Rating. The company said Bitcoin could fall 11.4% annually for 5.8 years while its model maintained 1.0x coverage of net debt and preferred stock. Strategy created the metric itself and that no independent credit agency assigns it.
JPMorgan previously said building two to three years of cash coverage could ease concerns that Strategy might need to sell Bitcoin to fund preferred dividends. The new 2.1-year figure enters that range, although refinancing costs, dividend-rate changes, share prices and Bitcoin market conditions can alter the calculation.
Strategy has not announced when it will resume Bitcoin purchases. Its July 27 filing instead records a larger cash reserve, a $25 million STRC repurchase and another week without buying or selling BTC. Future weekly disclosures will show whether the company keeps directing stock-sale proceeds toward liquidity or returns to Bitcoin accumulation.
