The strategy raised another $263.5 million by selling Class A common stock while leaving its Bitcoin holdings unchanged for the second week in a row.
summary
- The strategy raised $263.5 million through MSTR sales while keeping its Bitcoin holdings unchanged this week.
- The strategy increased its US dollar reserves to $3.225 billion to support dividends and debt obligations.
- The STRC valuation debate continues as investors evaluate cash flows, leverage, dividend coverage, and exposure to Bitcoin.
The company sold 2,732,318 shares of MSTR stock between July 13 and July 19 through its market program. According to To a July 20 filing with the U.S. Securities and Exchange Commission. The Strategy did not announce any sales under the STRC, STRF, STRK or STRD preferred stock programs during the period.
The strategy also did not make any purchases or sales of Bitcoin during the week. So its holdings remained at 843,775 bitcoins, acquired for about $63.69 billion at an average cost of $75,476 per bitcoin, including fees and expenses. The company’s official Bitcoin tracker confirms the same total.
MSTR sales push cash reserves past $3.2 billion
The recent stock sales brought the US dollar strategic reserve to US$3.225 billion as of July 19. This figure includes expected revenues from ATM sales that had not yet been settled by the reporting date. The strategy uses reserves to support dividends on preferred stock and interest payments on outstanding debt.
The company still has about $23.53 billion available under the MSTR ATM program after recent transactions. It also did not announce any share buybacks during the week, despite pre-approved programs covering common and preferred securities.
The latest capital increase comes after a larger sale of shares in the previous week. As crypto.news reported, The strategy raised $466.7 million Through the sale of approximately 4.82 million shares of MSTR stock between July 6 and July 12. Its Bitcoin holdings also remained unchanged at 843,775 BTC during that period, while US dollar reserves reached $3 billion.
Together, the two weekly updates show the strategy continuing to raise money through common stock without adding to its Bitcoin position. The company has now increased its reserves by $675 million since July 5, when it announced $2.55 billion in cash following a separate bitcoin sale.
Bitcoin holdings remain unchanged after the previous sell-off
Strategy’s current balance of 843,775 BTC follows the sale of 3,588 BTC between June 29 and July 5. The company raised about $216 million from that deal and said the proceeds would support payments linked to its digital credit papers. Crypto news I mentioned While the sale reduced the strategy’s holdings to their current level.
This deal follows Strategy’s introduction of its broader digital credit capital framework. The plan gives the company the authority to sell up to $1.25 billion worth of Bitcoin under certain conditions, primarily to bolster its US dollar reserves and meet dividends, interest and other capital needs. The mandate does not require the strategy to sell the entire amount.
As previously reported by crypto.news, the framework also It included $2 billion In authorized repurchases of common and preferred securities. The strategy also raised STRC’s annual dividend rate to 12% from 11.5%, effective July.
For now, Strategy has opted for common stock sales rather than additional Bitcoin sales to add liquidity. The company’s current Bitcoin balance remains below the 847,363 BTC it held before its July transactions, while its cash reserve continues to rise.
Debate continues over STRC’s valuation as shares trade below par
The latest filing comes as investors continue to evaluate the strategy’s preferred equity structure. STRC closed at $85.29 on July 17, well below its reference value of $100, while MSTR ended the same session at $94.85. According to to historical Yahoo Finance data.
Credit investor Khing Oei said investors may be placing too much weight on STRC’s current headline yield when evaluating the security. “Never estimate flow by dividing this year’s coupon by today’s price,” Oi booksArguing that investors should instead examine expected future cash flows and the strategy’s ability to fund distributions. His rating represents his own evaluation point of view and not the company’s guidance.
The strategy has already changed STRC’s payment structure as part of its efforts to shore up security. Such as crypto.news I mentioned In June, the company moved toward STRC’s semi-monthly dividend while shares continued to trade below the $100 reference level.
A growing US dollar reserve gives the strategy more cash available to service those obligations without immediately selling additional Bitcoin. However, dividend costs, debt interest, future capital raisings, and Bitcoin prices remain factors that investors track when evaluating a company’s securities and treasury structure.
The strategy’s latest filing shows that common stock remains a significant source of available funding. After raising $263.5 million during the week, the company retained approximately $23.53 billion of additional MSTR sales capacity under its ATM arrangements.
The company did not specify when it would use that remaining capacity or when it could resume purchasing Bitcoin. Its latest weekly filings showed no Bitcoin acquisitions, while its US dollar reserves rose from $3 billion to $3.225 billion.
