Strategy Raises $333.7M, Skips Bitcoin Purchases, Bolsters Dollar Reserve

Strategy, the business intelligence firm formerly known as MicroStrategy, raised $333.7 million from common-stock sales last week and didn't spend a cent of it on Bitcoin. Instead, the company pushed the proceeds into preferred dividends, buybacks, and a larger dollar reserve, leaving its 840,447 BTC stash untouched for the period.

Where the $333.7 million went

The allocation breaks down like this: $52.4 million went to STRC preferred-stock dividends, $132.2 million went to repurchase STRC shares, and $149.1 million was added to the company's US dollar reserve, which now stands at $4.8 billion. None of the money was used to buy Bitcoin — a notable shift for a company that has historically converted every spare dollar into the cryptocurrency.

A two-month buying pause

Strategy hasn't added to its Bitcoin holdings since June 21. Over the past two months, it has actually sold nearly 7,000 BTC, trimming the position to 840,447 coins. The pause hasn't been kind to the stock. MSTR is down about 35% over that stretch, while Bitcoin itself has fallen roughly 10%. The widening gap suggests investors are losing patience with a strategy that used to be simple: issue stock, buy Bitcoin, repeat.

Why management is holding back

CEO Phong Le defended the decision to use common-stock proceeds to support preferred securities, arguing that restoring MSTR's value depends on increasing Bitcoin per share — not just accumulating more coins. Michael Saylor, the company's co-founder and executive chairman, framed the current period as an investment phase, with a hurdle rate of roughly 10% to 10.5%. In other words, new Bitcoin buys have to clear that bar before they make sense.

The dollar buffer

The $4.8 billion reserve gives Strategy about 2.8 years of coverage for preferred dividends and debt interest. That's a deliberate cushion. The company has said future STRC proceeds may stay in dollars rather than being converted to Bitcoin, to keep the liquidity buffer intact. It's a far cry from the days when every raise was immediately routed to the BTC treasury.

Buybacks keep pace

Alongside the reserve buildup, Strategy has been repurchasing its own preferred shares — roughly $347 million worth over the past two months. That's a direct way to support STRC prices, which have been under pressure as the stock slid. Combined with the dividend payments, the company is spending real money to keep preferred holders happy while it waits for a better entry point on Bitcoin.