Strategy Inc. (MSTR) shares climbed 5.45% to $96.67 after the company bolstered its cash reserves by $525 million and repurchased $25 million worth of preferred shares. Despite these moves, the firm kept its Bitcoin holdings steady at 843,775 BTC, marking the fifth consecutive week without new Bitcoin acquisitions.
Cash and Capital Actions
During the week ending July 26, Strategy increased its cash balance to $3.75 billion by selling 5,429,160 common shares through its at-the-market equity program. These sales raised $544.5 million in net proceeds without requiring any Bitcoin sales. This fresh liquidity now covers about 2.1 years of the company’s preferred dividend and debt interest obligations, estimated at $1.76 billion annually, enhancing the company’s financial flexibility.
In addition, Strategy repurchased 288,930 STRC preferred shares for roughly $25 million under its $1 billion Digital Credit Securities Repurchase Program. After this transaction, $975 million remains available for further repurchases. The preferred shares traded below their $100 par value, hovering near $88.61 during pre-market activity, presenting an attractive buyback opportunity. Meanwhile, no common shares were repurchased, but the company retains authorization for future buybacks.
Management recently introduced a new performance metric called net Bitcoin per share, which factors in outstanding debt and preferred obligations to give shareholders a clearer picture of Bitcoin exposure per common share.
This material is for informational purposes only and does not constitute financial advice.
