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Strategy expands cash reserve, pauses Bitcoin buying for four weeks

The cash reserve rose to $3.225 billion, supporting Strategy’s preferred-stock business tied to about $1.76 billion in expected annual dividends and interest expense.

Reported · Written up by our desk · Market Structure

Michael Saylor-led Strategy raised additional cash by issuing new shares, but did not add to its Bitcoin holdings for a fourth consecutive week, according to a July 20 SEC filing reviewed by CryptoSlate. The company issued 2.73 million Class A shares between July 13 and July 19 and reported no sales under its four preferred-stock offering programs. As a result, Strategy increased its designated US dollar reserve by $225 million to $3.225 billion, while leaving its Bitcoin holdings unchanged at 843,775 BTC.

CryptoSlate said the pause in Bitcoin purchases pushed Strategy’s quarter-to-date Bitcoin performance measures into negative territory because common shares increased without a corresponding rise in its crypto balance. Strategy’s higher reserve is intended to strengthen its expanding preferred-stock business, which carries about $1.76 billion in expected annual dividends and interest expense. With reserves around $3.2 billion, Strategy would cover roughly 22 months of those payments, above the 12-month minimum under a policy approved by its board in June.

The filing also highlights that the company is using part of the cash to support Stretch, or STRC, in its preferred-stock lineup. STRC has a stated value of $100 per share and pays a variable annual dividend of 12%, and it has traded below $100 since mid-May, recently hovering near $87 after falling to about $75 in late June.

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