Strategy, the world's largest corporate bitcoin holder, has stopped purchasing bitcoin and built a $3 billion cash reserve against its 843,775 BTC holdings worth approximately $55 billion as of July 12. The company disclosed this week that it raised $450 million to increase its USD reserves, marking the third consecutive week without bitcoin acquisitions since June 22. The cash buffer is designed to cover roughly 20 months of dividend and interest obligations on the company's preferred stock and debt instruments. Strategy's pivot comes as its bitcoin position, accumulated at a cost basis of $63.69 billion, carries an unrealized loss of nearly $9.9 billion with bitcoin trading near $64,500.
Strategy Builds $3 Billion Cash Reserve Through Stock Sale
Earlier this week, Saylor disclosed on X that Strategy had increased its USD reserve by $450 million. The company raised approximately $467 million through a common stock sale under its at-the-market program. Strategy now operates what observers describe as a barbell strategy: a large bitcoin position on one end and a growing cash buffer on the other. The firm sold 3,588 BTC in recent weeks to help build its cash position, a move that drew criticism from longtime supporters.
Bitcoin Position Shows $9.9 Billion Unrealized Loss
At current prices near $64,500, Strategy's 843,775 BTC is worth roughly $55 billion. The position was accumulated at an aggregate cost basis of $63.69 billion, or about $75,500 per coin. This leaves the company with an unrealized loss of nearly $9.9 billion, with bitcoin down approximately 30% this year. The $3 billion cash reserve provides roughly 20 months of coverage for dividend and interest obligations owed on the company's preferred stock and debt.
Saylor Repositions Strategy as Digital Credit Provider
Saylor has characterized the pivot as a product strategy rather than a retreat. In a recent presentation, he described the company as a manufacturer of yield instruments built on its bitcoin base, stating "Bitcoin is Digital Capital. Strategy transforms it into Digital Credit." The presentation showed an effective yield of 16.69% on the company's junior STRD preferred securities and 13.79% on its flagship STRC offering, against roughly 4% on comparable U.S. government bond funds. STRD trades near $60.42 and STRC near $88.28.
FAQ
How much bitcoin does Strategy currently hold?
Strategy holds 843,775 BTC as of July 12, worth approximately $55 billion at current prices near $64,500. The company accumulated this position at a cost basis of $63.69 billion, or about $75,500 per coin.
Why did Strategy stop buying bitcoin?
Strategy has not purchased bitcoin since June 22 and instead focused on building a $3 billion cash reserve. The company raised approximately $467 million through a stock sale to increase its USD reserves, which are designed to cover roughly 20 months of dividend and interest obligations on its preferred stock and debt instruments.
