Morning Minute: Strategy Chooses Cash, STRC Over BTC
Strategy paused Bitcoin purchases for a fifth straight week, its longest stop in two years, and instead added $525 million to cash, bringing reserves to $3.75 billion. That cash now covers about 2.1 years of annual preferred dividends and debt interest. The company raised the money by selling 5.4 million MSTR shares and kept its Bitcoin holdings unchanged at 843,775 BTC. It also bought back $25 million of STRC preferred stock, its first repurchase under a $1 billion authorization. The move highlights pressure on STRC, which has traded below par and dragged on the broader structure. Strategy has increasingly used shareholder dilution to build cash and support preferred stock rather than buy more Bitcoin. It also changed its reported metrics, introducing “net Bitcoin per share” and a revised mNAV that puts the stock near the threshold where issuing shares for Bitcoin would no longer be accretive. The Bitcoin stack is now roughly $8.5 billion underwater versus purchase cost.
