Strategy Pads Cash Reserves to $3 Billion, Skipping Bitcoin Buy for Third Week
Strategy did not buy Bitcoin for a third straight week and instead raised $467 million by issuing common stock, increasing its USD Reserve to $3 billion. The move was aimed at strengthening cash coverage for preferred-stock dividends and debt interest after adopting a new capital management framework that allows Bitcoin sales when needed. Benchmark-StoneX estimated the company now has more than 20 months of coverage for its $1.76 billion in annual dividend and interest obligations. Strategy’s stock fell 4% to about $90.80, while its preferred stock also slipped. Since its last Bitcoin purchase on July 22, the company has generated about $215 million by selling Bitcoin for liquidity needs. Its 843,775-Bitcoin stash was worth roughly $53 billion, still about $11 billion below its average purchase price.
