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Strategy has continued to sit on the sidelines of the Bitcoin market, opting to strengthen its balance sheet instead of adding to its cryptocurrency holdings. The company has now gone five consecutive weeks without purchasing more Bitcoin, choosing to increase its cash reserves to support long-term financial obligations and shareholder initiatives.
In its latest filing, the Bitcoin treasury firm revealed that it raised approximately $544.5 million by selling 5.43 million MSTR shares through its at-the-market equity program between July 20 and July 26. After expenses, the company added roughly $525 million to its cash reserve, bringing the total to $3.75 billion.
Despite the fresh capital raise, Strategy's Bitcoin holdings remain unchanged at 843,775 $BTC. The company has not acquired additional Bitcoin since announcing the purchase of 520 $BTC for around $35 million in late June, making this its longest buying pause in roughly two years.
The company said its growing cash reserve is now sufficient to cover about 2.1 years of dividend payments and interest obligations, which currently total approximately $1.76 billion annually. Building this reserve has become a central part of Strategy's updated capital management approach, giving it greater flexibility while reducing pressure to sell Bitcoin during unfavorable market conditions.
Alongside the cash increase, Strategy also completed its first repurchase of its own preferred shares. The company bought back 288,930 STRC shares for approximately $25 million under its previously announced $1 billion Digital Credit Securities Repurchase Program. Following the transaction, around $975 million remains available for future preferred share buybacks, while a separate $1 billion authorization for common stock repurchases has yet to be used.
The preferred shares have traded below their $100 par value for several months. In pre-market trading, STRC changed hands at $88.61, recovering nearly 2% after recently hitting record lows.
Strategy's current financial strategy stems from a framework introduced earlier this summer that allows the company to raise cash for dividends, share repurchases and reserve funding. Although the framework also permits Bitcoin sales if necessary, Strategy has so far relied on equity offerings instead of reducing its cryptocurrency holdings. The latest stock sale leaves nearly $22.98 billion in remaining capacity under its MSTR issuance program.
Investor expectations for future Bitcoin accumulation have also moderated. Prediction market participants currently assign only a 12% probability that Strategy will surpass 1 million $BTC before the end of the year, reflecting growing skepticism after several weeks without new purchases.
The company has also updated the way it measures the value of its Bitcoin holdings for shareholders. Rather than focusing solely on total Bitcoin owned, Strategy introduced a new "net Bitcoin per share" metric that adjusts for outstanding debt and preferred stock obligations. Management says the updated calculation offers investors a clearer picture of how much Bitcoin ultimately backs each common share.
In addition, Strategy revised its modified net asset value (mNAV) calculation using the new methodology. Under the updated framework, the company's shares currently trade at roughly 1.02x net asset value, close to the threshold where issuing additional stock to purchase Bitcoin would no longer increase Bitcoin exposure on a per-share basis.
Bitcoin was trading near $65,000 on Monday, leaving Strategy's massive Bitcoin portfolio still significantly below its total acquisition cost. Based on current prices, the company's holdings remain roughly $8.5 billion underwater compared with the approximately $63.69 billion it has spent building its Bitcoin reserve.
Investors will be watching closely when Strategy reports its second-quarter earnings later this week, looking for clues on whether the company plans to resume Bitcoin purchases or continue prioritizing liquidity and capital management over expanding its digital asset holdings.