Strategy Inc. (MSTR) has boosted its cash holdings by $525 million over the past week, as detailed in a recent Form 8-K filing. The company sold 5.4 million MSTR shares for $544.5 million and
Strategy Inc. (MSTR) has boosted its cash holdings by $525 million over the past week, as detailed in a recent Form 8-K filing. The company sold 5.4 million MSTR shares for $544.5 million and repurchased 288,930 shares of its STRC preferred stock for $25 million during the same period.
Executive chairman Michael Saylor confirmed the update by posting on X, stating that Strategy now has 2.1 years of coverage for its dividend and interest payments. As of the most recent filing, Strategy holds $3.75 billion in its USD reserve, significantly strengthening its financial position.
Saylor had signaled an announcement early by sharing a tracker chart on X with the note, “We’re gonna need another color,” a phrase he has previously used ahead of new disclosures about coin purchases.
Strategy Inc. has secured enough in its USD reserve to cover more than two years of its scheduled dividend and interest payments, according to Michael Saylor.
Despite this pattern, Strategy did not purchase any Bitcoin last week. This marks five consecutive weeks without a Bitcoin acquisition by the company.
Strategy currently holds 843,775 BTC, valued at $54 billion. However, the company is reportedly facing unrealized paper losses exceeding $8 billion on its Bitcoin portfolio.
Mini dictionary: Strategy Inc. is a publicly traded software and business intelligence company, known for its significant allocation of corporate funds into Bitcoin holdings.
The company’s preference for maintaining and building reserves, rather than expanding its cryptocurrency portfolio, has remained stable for over a month.
MetricAmountBTC Holdings843,775 BTCBTC Portfolio Value$54 billionUnrealized BTC Loss$8 billionUSD Reserve$3.75 billionPeter Schiff, a prominent financial commentator and consistent Bitcoin critic, publicly challenged Strategy’s decision to raise cash through MSTR share sales. Schiff argued that selling discounted common stock reduces Bitcoin per share for investors.
According to Peter Schiff, the company’s choice to strengthen reserves by selling MSTR shares “destroys common shareholder value” and leaves fewer reasons for investors to hold the stock, rather than selling Bitcoin directly.
Schiff further claimed that this approach was unfavorable for shareholders, expressing doubt about the rationale for owning MSTR after recurring stock sales.
Strategy is scheduled to report its second-quarter earnings on July 30. Analyst consensus projects earnings to rise 6.40% to $121.88 million for the quarter.
Following the news, MSTR shares rose 6.44% on the day, closing at $97.46. The consensus price target for MSTR stands at approximately $360, indicating potential upside of over 290% from current levels.
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