Strategy raises $467 million and skips Bitcoin for third week

Strategy raised $467 million through common stock and did not buy Bitcoin for a third straight week, according to Decrypt’s Morning Minute newsletter by Tyler Warner. For investors tracking MSTR as a Bitcoin-linked stock, the key detail is where the new money went: into cash reserves, not more crypto exposure.

Decrypt reported that the company’s dollar reserve rose to a record $3 billion after the raise. That cash cushion now covers more than 20 months of Strategy’s annual dividend and interest obligations, which Decrypt put at $1.76 billion.

A common-stock issuance means a company sells new shares to bring in cash. That can strengthen the balance sheet, but it also dilutes existing shareholders because ownership is spread across a larger share count. Warner described the latest move as MSTR holders being diluted to support payments tied to STRC, Strategy’s preferred stock.

Preferred stock is a class of shares that typically sits between common stock and debt. It often pays a fixed dividend and may have a stated redemption value, known as par value. Decrypt said STRC was trading at $87.04, below its $100 par value, while paying a 12% dividend.

Cash takes priority over new Bitcoin buys

The decision stands out because Strategy is best known for using capital markets to build one of the largest corporate Bitcoin positions. Decrypt said the company has not bought Bitcoin since June 22 and now holds 843,775 BTC.

Bitcoin was trading near $62,600 in the newsletter’s market snapshot, while Decrypt listed Strategy’s average Bitcoin cost at $75,476. On that basis, Warner wrote that the company’s Bitcoin position was roughly $11 billion below its cost basis.

Strategy’s stock also remains under pressure. Decrypt reported that MSTR fell 4% on Monday to about $90.80 and was down 18% for the month. The stock had steadied after touching a 28-month low of $81.81 in late June, according to the newsletter.

The market backdrop was mixed for crypto. Decrypt’s morning roundup put Bitcoin around $62,700 and said spot Bitcoin exchange-traded funds saw $425 million in outflows. An exchange-traded fund, or ETF, is a fund that trades on stock exchanges and gives investors exposure to an asset without holding it directly.

Warner framed the main open issue as Strategy’s choice to keep building cash instead of buying Bitcoin at current prices. Decrypt did not report a company explanation for the pause in purchases, and the newsletter’s comments on management’s motives were presented as analysis.

For retail investors, the takeaway is the trade-off inside Strategy’s current playbook. More cash may reduce near-term financing stress, while new share sales can dilute common shareholders. A pause in Bitcoin buying also changes the near-term story for a stock many investors watch through the lens of its crypto holdings.

This story draws on original reporting from Decrypt.