Strategy (formerly MicroStrategy) saw its shares rise on Monday after the company disclosed it had built a $1.59 billion cash reserve through a recent stock sale, without adding to its already substantial Bitcoin holdings. The move comes as Bitcoin rallied nearly 25% over the past week, trading around $78,700 after briefly touching $80,000.
According to a Securities and Exchange Commission filing, Strategy sold 18.26 million shares between August 17 and August 23, generating approximately $2 billion in gross proceeds. The company used about $136.4 million to repurchase its STRC preferred stock and allocated $300 million to its existing US dollar reserve, bringing that reserve to $5.1 billion. The remaining $1.59 billion was placed into a newly created liquidity account called USD Cash.
Strategy said the new cash pool would provide a “more flexible source of liquidity” and could be used for future Bitcoin purchases, preferred-stock dividends, debt payments, or share repurchases. This approach gives the company additional financial flexibility without immediately increasing its cryptocurrency exposure.
Shares of Strategy rose about 7.2% in early trading before paring gains, and were last up 2.5%. Over the past week, the stock has surged 34%, outperforming other crypto-exposed names like Coinbase and Robinhood. The stock closed Friday at $119.25, up 6.1% on the day.
Bitcoin holdings unchanged
Strategy's Bitcoin position remained at 840,447 BTC, acquired at an average price of $75,385 per coin, for a total cost of about $63.4 billion including fees. At current prices, those holdings are worth roughly $65.8 billion, representing paper gains of about $2.4 billion. The company's stash represents approximately 4% of Bitcoin's 21 million supply cap.
The decision to hold steady comes after a period of capital allocation adjustments. Strategy has expanded programs that allow it to use its balance sheet and securities to support dividends, interest payments, and share repurchases. Bernstein analysts noted that the company had sold only about 0.8% of its Bitcoin holdings in recent weeks while seeking to strengthen dividend reserves and support STRC buybacks.
Bernstein analysts said Strategy's balance sheet had stabilized following recent pressure. They expect the company could resume Bitcoin purchases as STRC moves closer to its $100 nominal value. The preferred stock was trading around $96.43.
Liquidity backdrop supports Bitcoin rally
Strategy's latest moves come amid a broader crypto market recovery. Bitcoin climbed nearly 25% last week, and analysts at Bernstein attributed part of the rally to the US Treasury's decision to increase purchases of longer-dated government debt. They said greater liquidity and lower long-term interest rates could provide additional support for Bitcoin.
The broader Bitcoin treasury sector has also expanded, with 197 public companies adopting some form of Bitcoin acquisition strategy, according to Bitcoin Treasuries data. However, shares of many of these companies remain well below their 2025 peaks as market valuations relative to net asset value have contracted. Strategy, for example, remains around 74% below its previous peak.
For now, Strategy's latest filing signals a shift toward maintaining financial flexibility while keeping its large Bitcoin position unchanged. The company's ability to raise capital without immediately deploying it into Bitcoin suggests a more cautious approach, even as the cryptocurrency rallies.
This article is for informational purposes only and does not constitute financial advice.
