MarketsStrategy Halts Bitcoin Purchases to Build $3 Billion Cash Reserve
Strategy now possesses over 20 months' worth of coverage for preferred-stock dividends and interest on debt.
By James Van Straten|Edited by Oliver KnightUpdated Jul 13, 2026, 3:54 p.m. Published Jul 13, 2026, 3:27 p.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on
Strategy Executive Chairman Michael Saylor. (Nikhilesh De)Show- Strategy has not engaged in any bitcoin purchases since June 22. During this period, it sold 3,588 BTC and boosted its cash reserves to $3 billion.
- This reserve offers 20.4 months of coverage, allowing Strategy to navigate a bitcoin downturn while still fulfilling its dividend and interest commitments.
Since its last bitcoin acquisition on June 22, when it bought 520 BTC for about $35 million, Strategy (MSTR) has redirected its focus towards enhancing its liquidity.
In the week ending July 5, Strategy sold off 3,588 BTC in two transactions: 1,363 BTC for around $80.8 million on June 30, followed by 2,225 BTC for $135.2 million. This resulted in approximately $216 million in sales, reducing its bitcoin holdings to 843,775 BTC.
The company indicated that the funds would be used for preferred stock distributions and to restore the U.S. dollar reserve utilized for these payments. Following the sales, the reserve was approximately $2.55 billion.
As of Monday, Strategy increased its U.S. dollar reserve to about $3 billion. Given its annual obligations of roughly $1.76 billion for preferred-stock dividends and debt interest, the reserve now covers 20.4 months.
However, should bitcoin prices decline further, the $3 billion reserve might not be adequate, which could compel Strategy to seek additional financing or liquidate more bitcoin, potentially increasing pressure on both STRC and MSTR.
Economists have criticized Strategy's strategy, with Peter Schiff asserting that the company is "needlessly destroying shareholder value."
If bitcoin adheres to its historical four-year cycle, a low point could manifest later this year, possibly in October. However, this remains speculative.
Increasing the cash reserve is also a component of Strategy’s bitcoin monetization and capital-management strategy. One of its goals is to bolster the perceived creditworthiness of its perpetual preferred securities, particularly Stretch (STRC), by showing that cash distributions can persist during bitcoin downturns, along with the ability to sell up to $1.25 billion in bitcoin to cover dividend payments.
Currently, STRC is trading around $87, down approximately 0.5% on Monday, although it has recovered from a low of nearly $70 in late June. Its ongoing discount to the stated value of $100 indicates that investors still seek a higher yield to address bitcoin-related and liquidity risks.
On the other hand, MSTR’s multiple to net asset value (mNAV) on an enterprise basis is about 1.02, suggesting that shares are trading at a slight premium relative to the company’s net assets. Thus, the increased cash reserve provides Strategy with more options if the bear market continues and access to lucrative equity financing is constrained.
UPDATE, July 13, 16:53 UTC: Adds quote from Peter Schiff.
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