Strategy has successfully raised approximately $466.7 million by selling 4.82 million shares of its Class A common stock, according to a recent SEC filing. This action has resulted in the company’s cash reserves increasing to $3 billion, while its Bitcoin holdings remain untouched at 843,775 BTC. Notably, the firm did not engage in any Bitcoin transactions during this period, raising questions from economist Peter Schiff regarding the rationale behind selling stock instead of liquidating Bitcoin assets.
Stock Sale Details and Cash Reserve Increase
The share sales took place between July 6 and July 12, during which Strategy employed its at-the-market equity program to generate significant proceeds. This influx of cash is intended to bolster the company's financial position, supporting dividend payments and interest on outstanding debt. As of July 12, 2026, the average acquisition cost of the Bitcoin held by Strategy stands at $75,476, equating to an investment of about $63.69 billion. Given the current price of Bitcoin near $63,000, the company faces approximately $10.7 billion in unrealized losses.
Criticism from Peter Schiff
In light of Strategy's decisions, Peter Schiff has publicly questioned the company’s capital strategy. He suggested that the firm could have opted to sell some of its Bitcoin reserves to buy back its stock at a discount instead of diluting shareholder value through a stock sale. Schiff emphasized that the approach taken by Strategy may have unnecessarily harmed shareholder interests, as selling MSTR at a discount could lead to further losses for investors.
As Schiff pointed out, the company’s authorization to sell Bitcoin to repurchase its shares raises critical questions about the decision-making process behind the recent stock sale. His ongoing critiques reflect broader concerns within the investment community regarding corporate strategies that rely heavily on Bitcoin holdings. The discussions surrounding Strategy's latest moves highlight a tension between maintaining cryptocurrency investments and managing shareholder expectations in a volatile market.
This article is for informational purposes only and does not constitute financial advice.
