Strategy Boosts Cash Reserves, Buys Back Preferred Stock Amid Speculation Over New Move

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 rose more than 2% in Monday's premarket activity, according to Yahoo Finance. 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.

The update comes after Michael Saylor, Strategy's executive chairman, sparked speculation about a potential move involving the company's preferred stock strategy. Saylor had written on X that 'We're gonna need another color,' which some market observers interpreted as a hint at new developments.

Strategy's growing cash reserve now stands at $3.75 billion, up from $3.225 billion the previous week, following additional capital raised through its ATM stock offering program. However, the company reported no Bitcoin purchases or sales during the July 20-26 period, leaving its holdings unchanged at 843,775 BTC acquired at an average purchase price of $75,476 per Bitcoin.