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MicroStrategy’s cash surge leaves Bitcoin purchases on hold

Strategy’s Bitcoin-buying pause extends into a third straight week as the firm hoarded $467M in stock-sale proceeds, lifting its USD reserve to a record $3B.

Reported · Written up by our desk · Market Structure

MicroStrategy’s Bitcoin-buying push stayed in neutral for a third straight week, after the company raised $467M by issuing common stock and parked the proceeds in cash, according to Decrypt.

The stock issuance lifted Strategy’s USD reserve to a record $3B and effectively kept the week’s capital markets activity focused on strengthening its balance sheet, the outlet said. Decrypt added that the company has more than 20 months of coverage for its $1.76B in annual dividend and interest obligations.

Since its last Bitcoin purchase on June 22, Strategy generated about $215M from selling Bitcoin, Decrypt reported, noting that the cash raised from the single stock issuance did more than the Bitcoin sales. The company’s approach left holders facing dilution as Saylor used share sales to fund preferred-stock dividend payments, the outlet said.

Decrypt also cited market context, saying Bitcoin traded around $62,600 versus an average cost basis of $75,476 on Strategy’s 843,775-coin stack, which is roughly $11B underwater. The outlet questioned why Strategy is not buying at current levels, given its stated cash runway.

Latest closeBitcoin $64,752.03 ▲4.0%

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