Strategy Bolsters Cash Reserve with Record Stock Sale, Preferred Share Buyback

Strategy, the business intelligence firm behind the largest corporate Bitcoin treasury, has made significant adjustments to its capital structure. The company sold 5,429,160 shares of its Class A common stock (MSTR) through an at-the-market offering program between July 20 and July 26, generating $544.5 million in net proceeds.

The MSTR share price was up over 2% in Monday's premarket activity. Strategy also repurchased 288,930 shares of its STRC preferred stock for $25 million, as reported in a Form 8-K filing with the US Securities and Exchange Commission on Monday.

Strategy's growing cash reserve now stands at $3.75 billion, an increase from $3.225 billion the previous week. However, the company did not make any Bitcoin purchases or sales during this period, leaving its holdings unchanged at 843,775 BTC, acquired at an average price of $75,476 per Bitcoin.

The repurchase of STRC preferred shares highlights Strategy's efforts to maintain liquidity as it expands its capital markets activity. This move comes after Michael Saylor sparked speculation with a post on X suggesting a potential new development involving the company's preferred stock strategy.