MicroStrategy (now Strategy) sold $263.5 million in MSTR shares last week and did not buy any Bitcoin, marking a second consecutive week of unchanged holdings. The company's Bitcoin stash remains at 843,775 BTC, while its cash reserve grew to $3.2 billion after the share sales.
A second week without a buy
The company sold 2.73 million new shares through its at-the-market (ATM) program, disclosed in an SEC filing. That follows the prior week's $466.7 million raise. Together, the two July share sales created roughly 7.6 million new shares, resulting in about 2% dilution over two weeks against April's proxy count of 327 million shares.
MicroStrategy still has $23.5 billion in ATM capacity remaining. A $1 billion stock buyback plan remained unused.
The cost of the Digital Credit Framework
The cash reserve is part of the Digital Credit Capital Framework, which requires $1.76 billion annually for dividends and interest payments. The $3.2 billion reserve covers approximately 22 months of these obligations, while the board requires only 12 months. Michael Saylor stated that Strategy remains committed to Bitcoin as its primary treasury reserve asset, but the Digital Credit framework requires liquidity and active capital management.
In June, MicroStrategy sold 3,588 BTC at approximately $60,000 each to pay dividends, selling below its cost basis. The average Bitcoin purchase price is $75,476, with a total cost of $63.7 billion. Bitcoin was trading near $64,700 at the time of the article, down nearly 48% from its October 2025 peak.
Share dilution and a falling stock
MSTR shares traded at $96.22 in Monday's pre-market, up 1.45% from the previous close of $94.85, but far below the 52-week high of $437. The company reported an $8.32 billion paper loss on its Bitcoin holdings last quarter. The two-week dilution adds pressure on a stock already down sharply from its peak.
What the market thinks
Bitwise CIO Matt Hougan believes MicroStrategy's run as the dominant Bitcoin buyer is over. Grayscale argues that controlled Bitcoin sales could stabilize BTC rather than sink it. The company's next weekly update will show whether the buying pause continues — or if the cash reserve is being built for a future purchase.
