Summary
- Strategy has increased its cash reserve by $525 million, bringing the total to $3.75 billion, while opting out of a Bitcoin purchase for the fifth consecutive week.
- This reserve is now sufficient to cover 2.1 years of the company's preferred dividends and debt interest obligations.
- Additionally, the Bitcoin treasury firm repurchased $25 million in STRC preferred stock, marking its initial buyback under a $1 billion authorization.
The Bitcoin treasury firm Strategy has refrained from acquiring Bitcoin for the fifth week in a row, instead adding $525 million to its cash reserves, which now total $3.75 billion.
Between July 20 and July 26, Strategy sold 5,429,160 shares of its MSTR common stock via its at-the-market program, generating net proceeds of $544.5 million, according to an official announcement. The company's Bitcoin holdings remain unchanged at 843,775 BTC, which have not been altered since a purchase of 520 BTC for $35 million disclosed on June 22.
Strategy has raised its USD Reserve by $525 million, securing coverage for 2.1 years of dividends. As of July 26, 2026, we hold ₿843,775 in our BTC Reserve and $3.75 billion in our USD Reserve. $MSTR $STRC https://t.co/FASxJUHTkN
— Strategy (@Strategy) July 27, 2026
According to the firm, this reserve is enough to cover 2.1 years of its $1.76 billion annual obligations for preferred dividends and debt interest.
In a recent filing, Strategy noted its first buyback of preferred stock, acquiring 288,930 Stretch (STRC) shares for $25 million. This transaction utilized part of the $1 billion authorized for its Digital Credit Securities Repurchase Program approved on June 29, leaving $975 million still available, alongside a remaining $1 billion authorization for common stock purchases.
STRC has been trading below its $100 par value since mid-May and reached record lows earlier this month. Currently, according to Yahoo! Finance, STRC shares are priced at $88.61 in pre-market trading, reflecting a 1.99% increase.
This strategic shift follows the capital management framework implemented by Strategy weeks prior, which allows the firm to sell up to $1.25 billion in Bitcoin to replenish reserves, cover dividend payments, and finance stock buybacks. Instead of selling Bitcoin, the firm has opted to raise cash through stock sales, boosting the reserve to $3 billion and then $3.225 billion, albeit at the expense of common shareholders. The company still has $22.98 billion of MSTR capacity available for future transactions.
On the prediction market Myriad, which is owned by Decrypt's parent company Dastan, participants assign only a 12% probability that Strategy will hold more than 1,000,000 BTC by the end of the year, a decrease from 14% a month ago.
Introducing a New Benchmark
Strategy's pause in Bitcoin purchases marks the longest such break in two years. Recently, the company revamped its investor metrics by introducing a "net Bitcoin per share" calculation that excludes $22.2 billion in debt and preferred claims, providing a clearer picture of what common shareholders actually own.
The company also adjusted its mNAV based on this new calculation, establishing a threshold for accretion at 1.0x. Under the previous gross measure, the stock appeared to trade at a discount; however, under the new metric, the same share price reflects a value of 1.02x, indicating the point below which issuing shares to acquire Bitcoin would reduce the Bitcoin per share ratio.
As of Monday, Bitcoin was trading around $65,000, according to CoinGecko data, positioning Strategy's Bitcoin holdings $8.5 billion below the $63.69 billion it invested. The company is set to announce its second-quarter earnings on Thursday.