Strategy Raises $263.5 Million via Stock Sales to Bolster Cash Reserves
The company increased its cash reserves to $3.225 billion while keeping its Bitcoin treasury unchanged.
Corporate Bitcoin giant Strategy has raised $263.5 million through the sale of its Class A common stock, boosting its cash reserves while temporarily pausing its aggressive cryptocurrency acquisition campaign.
According to a Form 8-K filed with the US Securities and Exchange Commission on Monday, the capital was generated through the company’s at-the-market equity program between July 13 and July 19. An at-the-market offering allows public companies to incrementally sell newly issued shares into the secondary market at prevailing market prices, providing flexibility in capital raising.
Despite the fresh influx of capital, Strategy did not execute any Bitcoin transactions during the six-day period. The company’s total digital asset treasury remains unchanged at 843,775 BTC. These holdings were acquired for an aggregate purchase price of $63.69 billion, representing an average acquisition cost of $75,476 per token. With Bitcoin recently trading around $64,657, the company’s portfolio is currently valued slightly below its initial purchase average.
The latest equity liquidation has strengthened Strategy’s balance sheet, pushing its total cash reserve to $3.225 billion—a 7.5% increase from the $3 billion reported a week prior. This reserve, which includes anticipated but unsettled proceeds from recent share sales, is earmarked to service interest payments on outstanding debt and cover dividend obligations for the company’s preferred stock.
This capital-raising activity follows a similar pattern from the preceding week, during which Strategy generated $466.7 million through its common stock program without purchasing additional cryptocurrency. The company still retains approximately $23.5 billion in unused capacity under its current common stock issuance program, leaving ample room for future fundraising.
The company’s dual-class share structure has sparked discussion among institutional investors regarding the valuation of its different securities. According to data from Yahoo Finance, Strategy’s preferred stock closed at $85.29 on Friday, while its common stock ended the trading session at $94.85.
Credit analyst Khing Oei suggested that the market may be mispricing the preferred shares by treating them as a standard high-yield instrument rather than analyzing their long-term cash flow potential. Oei noted that even if Bitcoin’s valuation remains stagnant, Strategy’s capacity to sustain dividend payments over several decades supports a theoretical valuation of approximately $96 per share. He added that any upward movement in Bitcoin’s price would strengthen the corporate treasury, potentially driving the preferred shares closer to their $100 par value.
