Strategy Boosts Cash Reserves by $225M via Stock Sale, Holds Bitcoin Tight

For the second consecutive week, Michael Saylor's Strategy has padded its cash reserves without selling a single Bitcoin. The firm sold 2,732,318 MSTR shares between July 13–19, netting $263.5 million, bringing its USD Reserve to $3.225 billion.

Stock Sales Over Bitcoin Sales

The company continues to use its at-the-market equity program to raise cash, mirroring last week's $466.7 million raise. This approach protects its 843,775 BTC stash—roughly 4% of Bitcoin's fixed supply—while funding dividend payments and debt obligations for preferred shareholders.

Who Gets Paid First?

Preferred shareholders—investors in securities like STRC, STRK, STRF, or STRD—collect regular dividends before common stockholders receive anything. By issuing new MSTR shares, Strategy dilutes common shareholders to keep preferred investors happy.

Peter Schiff's Criticism

Peter Schiff, a longtime Bitcoin skeptic, called the move "needlessly sacrificing common shareholders" and suggested Strategy fears selling BTC would crash the market. He argued there's "no excuse for purposely creating a negative Bitcoin yield."

Market Implications

Strategy's weekly cash updates are a de facto signal for crypto markets. Its BTC holdings were acquired at an average price of $75,476, leaving an unrealized loss of ~$9.6 billion at current prices. The USD Reserve has grown by $675 million in two weeks, all from stock sales.

Future Outlook

Michael Saylor previously stated Strategy would "probably buy all the Bitcoin produced by miners between here and the year 2140." However, prediction markets suggest it's unlikely to hold 1M BTC by 2027.