Strategy Boosts Cash Reserve to $3.75B, Keeps Bitcoin Holdings Unchanged
Strategy's U.S. dollar reserve has grown to $3.75 billion, representing 2.1 years of coverage for preferred stock dividends. The company made this announcement in a July 27 disclosure. Strategy increased its cash balance by $525 million, which comes from common stock sales totaling $544.5 million.
The sale of MSTR shares was part of an at-the-market program and generated net proceeds. Strategy repurchased STRC preferred shares worth $25 million during this period but made no new Bitcoin purchases or sales. Its BTC reserve remains unchanged at 843,775 coins.
The company's cash balance now provides a larger cushion for its preferred stock dividends and interest on outstanding debt. This is in line with JPMorgan's suggestion that building two to three years of cash coverage could alleviate concerns about Strategy needing to sell Bitcoin to fund preferred dividends. However, the company has not announced when it will resume buying Bitcoin.