Strategy Raises Cash to $1.1B, Buys 1,587 Bitcoin

Strategy reported on Monday that its USD Reserve reached $1.1 billion and that it purchased 1,587 Bitcoin for about $100 million last week. The company’s total Bitcoin holdings are now 846,842 BTC, valued at roughly $56.3 billion.

The firm increased its cash cushion for a second consecutive week. The reserve had fallen to about $871 million last month after Strategy repurchased a portion of its convertible debt at a discount. The company sold 32 Bitcoin for $2.5 million several weeks ago.

Strategy’s flagship preferred stock carries an 11.5% annual dividend and has a market value near $10 billion. In a recent note, JPMorgan analysts wrote that rebuilding dollar reserves may be needed to restore investor confidence and reduce concerns about the company’s ability to make payments on that preferred security.

Shares in Strategy rose about 7% to $132.66 on the day of the disclosure as Bitcoin climbed back above the mid-$60,000 range. The stock had traded as much as 24% lower over the prior month.

Executive Chairman Michael Saylor introduced a conservative risk metric the company calls CEBE BPS to measure Bitcoin owned per share after accounting for senior claims. Historically, Strategy reported Bitcoin per share before subtracting liabilities. Saylor posted “Still adding dots” on X alongside a chart of recent purchases and noted the company evaluates accretion using multiple measures.

Using the company’s traditional internal framework, the latest purchase reduced Bitcoin owned per share for a second straight week. The year-to-date percentage change in Bitcoin per share moved from about 13% to roughly 12.5%. The company said it reviews both net asset value, which factors in cash reserves, and per-share Bitcoin metrics when assessing accretion.

The reserve figure, the Bitcoin purchase and the new metric were disclosed in the firm’s Monday update.