Strategy cash reserve rises by $525 million as Bitcoin buys pause

Strategy cash reserve levels moved higher again while its Bitcoin pile stayed flat, a shift retail investors will notice because the company has become one of the market’s most watched Bitcoin-linked stocks. Strategy said Monday that it added $525 million to its USD Reserve, bringing that balance to $3.75 billion, while making no Bitcoin purchase for the fifth straight week.

The company said in an announcement that it now holds 843,775 BTC in its Bitcoin reserve. That figure has not changed since a June 22 disclosure, when Strategy reported buying 520 BTC for $35 million.

Strategy, formerly known as MicroStrategy, is followed by many investors as a public-market proxy for Bitcoin exposure. Its stock can reflect both the company’s software business and the market’s view of its large Bitcoin holdings, along with the financing choices it uses to fund them.

How much cash and Bitcoin does Strategy hold?

As of July 26, Strategy said it held $3.75 billion in its USD Reserve and 843,775 BTC in its Bitcoin Reserve. A reserve is a pool of assets the company can use for obligations or future corporate decisions, depending on the rules and priorities it sets.

The company said the cash reserve equals 2.1 years of coverage for its preferred dividends and debt interest. In plain English, that means Strategy says it has enough cash set aside to cover a little more than two years of the annual payments it owes on those instruments, based on its current obligations.

Preferred dividends are payments tied to preferred stock, a type of equity that usually has different rights than common stock and often comes with a stated dividend. Debt interest is the regular cost a borrower pays lenders on outstanding debt.

Where did the new cash come from?

Strategy said it sold 5,429,160 shares of MSTR common stock between July 20 and July 26 through its at-the-market program, raising $544.5 million in net proceeds. An at-the-market program lets a public company sell shares into the open market over time at prevailing prices, instead of selling one large block all at once.

The new cash did not all go into the USD Reserve. Strategy also said it bought back $25 million of STRC preferred stock, its first repurchase under a $1 billion authorization. A buyback reduces the amount of that security outstanding, though the company did not provide more detail in the announcement about the pricing or timing beyond the stated amount.

For investors tracking MSTR, the update highlights a pause in the company’s regular Bitcoin accumulation and a stronger cash cushion for payment obligations. Strategy did not announce a change to its total Bitcoin holdings, and it did not say in the announcement that it had ended its Bitcoin treasury strategy.

This story draws on original reporting from Decrypt.