The largest corporate bitcoin holder has changed tactics. Instead of buying BTC▲$62,630.00, the company directed the proceeds from its stock sale into its dollar reserves.
According to an SEC filing, between July 6 and July 12, Strategy sold 4.8 million MSTR shares for $466.7M. Its bitcoin (BTC) holdings remained unchanged at 843,775 BTC, worth roughly $53B. Its dollar reserve grew by $450M to $3B.
Hot topic: Bitcoin Rally May Have to Wait for a Clear Catalyst, Analysts Say
The average bitcoin purchase price is $75,476 per coin, implying an unrealized loss of about $10.7B. At the time of publication, bitcoin trades at roughly $62,600–down 2.2% on the day.
Last year, the company acquired about 175,000 BTC for $14B. The decision to pause purchases and build its dollar reserve marks a departure from its former strategy of endless accumulation.
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Why Strategy Boosted Its Dollar Reserve Instead of Buying BTC
The company is maintaining the reserve to support dividend payments on its STRC preferred shares and interest payments on its debt obligations. The $3B reserve covers several years of payments, reducing the risk of forced bitcoin sales. Strategy had previously sold 3,588 BTC for dividends, but this time it opted to raise funds through equity issuance.
The move came after Saylor posted on X–a signal that had previously preceded bitcoin purchases. This time, however, it didn’t lead to an increase in BTC reserves–only to a larger dollar cushion.
Analysts believe the company is shifting to a more conservative capital management strategy amid market uncertainty.
Read more: Is Michael Saylor Losing Faith in Bitcoin? Strategy Sells 3,588 BTC Worth $226M
Market Reaction: MSTR and STRC Shares
MSTR shares fell 2.6% in pre-market trading, reflecting trader disappointment at the lack of new BTC purchases. Last week, after the 3,588 BTC sale, the stock had dropped to $95 but then recovered to $100 following news of the reserve boost. It lost momentum by the end of the week.
STRC preferred shares, by contrast, recovered from local lows below $75 to $87, as investors welcomed the move to boost dollar reserves–which lowers the risk of dividend default.
Learn more: JPMorgan Warns Strategy’s Bitcoin Sales Add “Two-Way Risk” — What Does It Mean for the Crypto Market?
