Strategy used $300 million of MSTR dilution to backstop its Bitcoin’s biggest buying machine
Strategy raised $335.5 million by selling about 2.71 million MSTR shares, but used nearly 90% of the proceeds to boost cash reserves instead of buying Bitcoin. About $300 million went to the U.S. dollar reserve, which rose to $1.4 billion; only $34.9 million bought 520 BTC. The move came after STRC perpetual preferred shares fell to record lows, shutting down Strategy’s usual funding channel for Bitcoin purchases. STRC carries an 11.5% dividend and about $10.5 billion in stated value outstanding, but selling more below $100 would be costly. The cash build helped support dividends and reduce near-term financing stress, though it diluted common shareholders. Strategy’s diluted share count rose and its BTC Yield declined. The week’s smaller BTC purchase suggests Bitcoin accumulation may slow if STRC stays weak.
