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Strategy extends Bitcoin pause and grows cash reserve to $3.75B

Strategy did not add to its 843,775 BTC holdings and instead raised about $525M via sales of 5.4M MSTR shares under an at-the-market program.

Reported · Written up by our desk · Market Structure

Strategy has extended its pause on new Bitcoin purchases to a fifth straight week, its longest gap in about two years, according to Decrypt. The company used the time to increase its cash reserve by $525 million, bringing total cash reserves to $3.75 billion.

The company sold 5.4 million MSTR shares through an at-the-market program between July 20 and July 26 to raise cash, while its Bitcoin holdings remained frozen at 843,775 BTC, unchanged since its June 22 purchase. Strategy also repurchased $25 million of its STRC preferred stock, its first buy under a $1 billion authorization approved June 29.

Decrypt said Strategy’s cash is now positioned to cover roughly 2.1 years of the $1.76 billion in annual preferred dividends and debt interest. The publication also noted that Strategy has been using its shareholder-funded cash to support STRC, whose shares have traded below $100 par since mid-May and reached record lows earlier this month.

Ahead of Strategy’s earnings this Thursday, Decrypt added that the company last week overhauled its own metrics, introducing “net Bitcoin per share” and redefining mNAV. It also said Strategy’s BTC stack is about $8.5 billion underwater versus the $63.69 billion the company paid.

Latest closeBitcoin $63,394.96 ▼0.5%

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