Michael Saylor's Strategy (NASDAQ: MSTR) continued its recent conservative streak, allocating the $467 million it raised last week to its dollar reserve rather than purchasing additional Bitcoin. The move, disclosed in a Monday SEC filing, leaves the firm's bitcoin stack unchanged at 843,775 BTC while boosting its cash reserve to $3 billion.
The company said the cash is earmarked for periodic dividend payments on its preferred stock and interest on debt. This follows a period in which Strategy broke its long-held "never sell" stance, liquidating 3,588 bitcoins for about $216 million between June 29 and July 5 to fund similar obligations.
Strategy still holds a commanding lead as the largest corporate Bitcoin holder, but its position is deep underwater: with an average purchase price of $75,476 and Bitcoin trading near $62,800, the firm's $63.69 billion outlay is billions in the red. The company's recently adopted capital framework allows for discretion in selling BTC, buying back shares, and maintaining a dollar reserve, though management used none of the Bitcoin monetization capacity this round.
Ripple CEO Brad Garlinghouse criticized the discount on Strategy's preferred stock as "a pretty damning indictment," arguing that "financial engineering does not drive long-term value." The market reaction was muted: MSTR traded down about 3% pre-market, and Bitcoin slipped over the weekend.
