Strategy (MSTR) has paused its bitcoin purchases for the first time in weeks, choosing instead to build a massive cash cushion. The company last bought bitcoin on June 22, acquiring just 520 BTC for about $35 million. Since then, it has shifted its focus from accumulation to strengthening its liquidity position.
During the week ending July 5, Strategy sold a total of 3,588 BTC in two separate transactions. On June 30, it sold 1,363 BTC for roughly $80.8 million. Then it sold another 2,225 BTC for $135.2 million. Combined, the sales generated around $216 million, reducing Strategy’s bitcoin holdings to 843,775 BTC.
The company said the proceeds would help fund distributions on its preferred stock and replenish part of its U.S. dollar reserve used for those payments. After the sales, the reserve stood at about $2.55 billion.
Strategic shift toward liquidity
On Monday, Strategy increased its U.S. dollar reserve to roughly $3 billion. Based on annualized preferred-stock dividends and debt interest of about $1.76 billion, the reserve now provides approximately 20.4 months of coverage. This liquidity buffer should give the company enough flexibility to ride out an extended bitcoin downturn without being forced to sell significant amounts of bitcoin at lower prices or raise capital under unfavorable conditions.
If bitcoin follows its historical four-year cycle, a cyclical low could arrive later this year—possibly around October. But this remains a scenario rather than a reliable forecast, and many factors could change that timeline.
Bolstering creditworthiness
Expanding the USD reserve is also part of Strategy’s broader bitcoin monetization and capital-management framework. One objective is to reinforce the perceived creditworthiness of its perpetual preferred securities, particularly STRC. By demonstrating that cash distributions can continue during periods of bitcoin weakness—and that up to $1.25 billion worth of bitcoin can be sold to fund dividend payments—the company hopes to reassure investors.
STRC currently trades at about $87, down roughly 0.5% on Monday. It has recovered from a late-June low near $70, but its continued discount to the $100 stated value suggests investors still require a higher yield to compensate for bitcoin-related and liquidity risks.
Meanwhile, MSTR’s multiple to net asset value (mNAV) on an enterprise basis is about 1.02, meaning shares trade at only a slight premium to net assets. The larger cash reserve gives Strategy more flexibility if the bear market drags on and access to cheap equity financing stays limited.
