- Strategy sold $466.7 million of MSTR shares over the past week to increase its cash reserves to $3 billion while its Bitcoin holdings remained unchanged at 843,775 coins.
Michael Saylor, Executive Chairman of Strategy, slowly breaks the norm as his Sunday posts no longer meant that their company bought Bitcoin (BTC) the week prior. On Monday, the Bitcoin development company announced an increase in its US dollar reserves while keeping intact its massive digital asset treasury holdings.
Strategy Skips Bitcoin Purchases to Increase Cash Reserves
According to Strategy’s latest Form 8-K filing with the US Securities and Exchange Commission (SEC), it sold roughly 4.82 million shares of Class A Common stock (MSTR) for $466.7 million between July 6 and 12. Then, it allocated $450 million to increase its US dollar reserves to $3 billion.
The move aligns with the company’s board-approved Digital Credit Capital Framework, authorizing it to strengthen its cash reserves, increase the Variable Series A Perpetual Stretch (STRC) Preferred Stock dividend, enhance debt buybacks, repurchase MSTR shares, and raise funds through discretionary BTC sales.
Previously, the business activated its BTC monetization program to sell 3,588 Bitcoin for $216 million. It also allotted the proceeds to replenish its cash reserves.
To date, Strategy has sufficient US dollar reserves to cover 20.4 months of dividends out of its $1.763 billion annual obligations to shareholders.
BTC Portfolio
Strategy’s BTC portfolio remained untouched over the period. It currently holds 843,775 BTC.
So far, the company has already invested around $63.69 billion in its Bitcoin playbook. It comes at an average purchase cost of $75,476 per BTC. The stack accounts for 4.2% of Bitcoin’s approximately 20.06 million circulating supply.
At Bitcoin’s drawdown from $64,340.88 to $62,472.69 in the last 24 hours, the value of Strategy’s holdings has swung from $54.29 billion to $52.71 billion. It puts its unrealized losses between $9.4 billion and $10.98 billion.
Despite ongoing bearish market sentiment, Strategy’s Bitcoin holdings can settle roughly 29.9 years of dividend payments.
JPMorgan Says Strategy is Not Bitcoin’s Biggest Threat
Amid the FUD (Fear, Doubt, Uncertainty) surrounding Strategy’s decision to sell BTC to sustain its cash reserves, buybacks, and dividends, JPMorgan analysts warned that the real threat to Bitcoin is not the company. They claimed that the danger lies in traditional finance (TradFi) tokenizing assets, processing payments, and settling transactions in permissioned rails rather than public blockchains.
Overall, the analysts argued that the model opens TradFi institutions access to the best of both worlds: capturing the efficiency of blockchain technology while ensuring control and compliance over assets.
