MicroStrategy sold $263.5 million worth of its own shares last week without buying additional Bitcoin, maintaining its holdings steady at 843,775 BTC. The company increased its cash reserves to $3.2 billion, aiming to sustain operations amid market fluctuations.

Share Sales and Cash Reserve Strategy

The company executed sales of 2.73 million new shares through an at-the-market (ATM) program, disclosed in a filing with the SEC. A $1 billion stock buyback plan remained unused. This follows a previous $466.7 million fundraise conducted similarly. The cash raised is allocated under the Digital Credit Capital Framework, designed to cover annual dividend and debt interest payments totaling $1.76 billion. Currently, the reserve can finance about 22 months of these obligations, surpassing the board’s minimum requirement of 12 months.

Founder and executive chairman Michael Saylor emphasized the company’s commitment to Bitcoin as its main treasury asset, while also prioritizing liquidity and disciplined capital management under the new policy.

MSTR Investors Face Dilution Amid Market Pressures

The average purchase price of MicroStrategy’s Bitcoin stands at $75,476 per coin, totaling approximately $63.7 billion invested. Bitcoin’s market price has declined nearly 48% since its peak in October 2025, leading to an $8.32 billion unrealized loss last quarter. To avoid selling Bitcoin below cost, the company now relies on its cash reserve to pay dividends and obligations, as it did in June when it sold 3,588 BTC near $60,000 each.

However, the recent share sales created dilution: about 7.6 million new shares issued in July account for a roughly 2% dilution based on the April proxy count of 327 million shares. Additional ATM capacity remains at $23.5 billion.

Post-announcement, MSTR shares rose 1.45% in pre-market trading to $96.22 but remain significantly below the 52-week high of $437. Opinions diverge on MicroStrategy’s strategic pivot. Bitwise’s CIO Matt Hougan suggests the company’s role as a dominant Bitcoin buyer is ending, while Grayscale argues controlled Bitcoin sales might stabilize the market. Saylor maintains that corporate Bitcoin adoption is inevitable.

This article is informational and does not constitute financial advice.