Strategy Pauses Bitcoin Buys for Fifth Week as Cash Reserve Hits $3.75 Billion
Firm expands cash buffer to $3.75 billion via stock sales while executing its first preferred stock buyback.
Strategy has extended its pause on Bitcoin acquisitions to five consecutive weeks—marking its longest buying hiatus in two years—as the firm pivots toward accumulating cash and addressing corporate liabilities. Rather than deploying fresh capital into digital assets, the corporate treasury pioneer added $525 million to its U.S. dollar reserve, bringing its liquid cash position to $3.75 billion.
The cash expansion was funded by equity issuance under the firm’s At-The-Market program. Between July 20 and July 26, Strategy sold 5,429,160 shares of MSTR common stock, generating $544.5 million in net proceeds. The capital raise leaves $22.98 billion in remaining capacity under its current MSTR issuance framework, according to regulatory filings detailing the firm’s capital operations.
With $3.75 billion in cash reserves, Strategy now holds enough liquidity to cover roughly 2.1 years of its recurring fixed financial obligations. The company faces approximately $1.76 billion in annual commitments split between interest payments on outstanding debt and preferred stock dividend obligations.
Simultaneously, Strategy executed its first buyback of preferred equity under a board-approved $1 billion Digital Credit Securities Repurchase Program initiated on June 29. The company spent $25 million to retire 288,930 shares of its Stretch (STRC) preferred stock, leaving $975 million available in that vehicle alongside an unused $1 billion authorization designated for common stock buybacks. STRC shares have traded beneath their $100 liquidation preference since mid-May, touching record lows before recovering slightly to $88.61 in pre-market trading, per market data from Yahoo! Finance.
The pivot reflects a broader operational shift defined by Strategy’s recently adopted capital management framework. While the board authorized selling up to $1.25 billion in Bitcoin if necessary to fund reserves, preferred payouts, or share repurchases, management has relied strictly on equity sales to bolster cash balances—padding the treasury reserve progressively from $3 billion to $3.225 billion, and now $3.75 billion.
The strategy aligns with an overhaul of the firm’s key performance metrics. Strategy recently introduced “net Bitcoin per share,” a yardstick that factors in $22.2 billion in senior debt and preferred claims to measure true equity-level asset backing. Under this updated framework, Strategy re-anchored its modified Net Asset Value (mNAV) threshold at 1.0x. While the legacy gross metric previously suggested the stock traded at a discount, the net valuation positions the share price at 1.02x—just above the break-even threshold below which new stock issuances become non-accretive to Bitcoin per share.
Strategy’s Bitcoin treasury stands at 843,775 BTC, unchanged since a June 22 purchase of 520 BTC for $35 million. With Bitcoin trading around $65,000 according to CoinGecko price data, the total stack carries a market value approximately $8.5 billion below its aggregate acquisition cost of $63.69 billion. Meanwhile, sentiment on prediction platform Myriad indicates traders assign just a 12% probability to Strategy reaching a 1 million BTC balance by year-end, down from 14% a month prior. Strategy is scheduled to report its second-quarter financial results on Thursday.
