Strategy Raises $263.5M, Keeps 843,775 BTC

Strategy raised $263.5 million by selling 2.73 million Class A MSTR shares under its at-the-market (ATM) program between July 13-19, the company said in a Form 8-K filed with the U.S. Securities and Exchange Commission. It reported no purchases or sales of Bitcoin during the period, leaving holdings unchanged at 843,775 BTC.

Proceeds from the stock sales increased Strategy’s U.S. dollar reserve to $3.225 billion, up from $3.0 billion a week earlier. The reserve includes expected proceeds that had not yet settled and is used to fund dividends on preferred stock and interest on outstanding debt. The company did not sell shares under any preferred stock ATM programs during the reporting period.

According to the company’s website, the 843,775 BTC were purchased for a total of $63.69 billion, an average acquisition cost of $75,476 per coin. Bitcoin traded at roughly $64,657 during the period covered by the filing. In the previous week, Strategy reported no Bitcoin transactions while raising $466.7 million through the same common stock ATM program.

Strategy has about $23.5 billion of remaining authorization under its common stock ATM program, allowing further sales of common shares to raise capital while maintaining its Bitcoin holdings.

On the market, STRC preferred shares closed at $85.29 and MSTR common shares at $94.85 on Friday. Credit investor Khing Oei wrote on X that STRC may be undervalued and should be assessed more like a bond. In his post he wrote, “Never value a stream by dividing this year’s coupon by today’s price,” and his model estimates the preferred shares could be worth about $96 even if Bitcoin’s price remains flat, based on the company’s capacity to support dividend payments and the effect of leverage.

Strategy remains the largest corporate holder of Bitcoin by reported holdings. The company has funded its Bitcoin purchases through periodic common and preferred share offerings while maintaining cash reserves to meet dividend and interest obligations.