Strategy raises cash and expands buybacks while keeping bitcoin holdings steady

For the second consecutive week, the firm kept bitcoin holdings steady, choosing to use the raised capital to boost cash for paying dividends on its preferred stock.

Strategy Adds $467 Million In Cash, No Bitcoin As StanChart Warns Saylor Needs Clarity In Pivot Message To Convince Investors Strategy, the largest corporate holder of Bitcoin, raised fresh capital by selling MSTR shares through its at-the-market (ATM) offering last week while leaving its BTC treasury unchanged. As CoinTelegraph's Helen Partz reports, Strategy sold 4.8 million shares of its Class A common stock for $466.7 million between July 6 and July 12, according to a Monday 8-K filing with the US Securities and Exchange Commission.  The company did not buy or sell any Bitcoin during the period and reported holdings of 843,775 BTC at an average purchase price of $75,476 per BTC.  The update comes as investors continue to watch how Strategy balances equity issuance, Bitcoin accumulation and its growing preferred stock offerings as it expands its BTC-focused corporate strategy. Ahead of Monday's Nasdaq open, MSTR shares were trading down roughly 3%, to $91.80 apiece, according to Yahoo Finance. Bitcoin was trading at about $62,580, down more than 2% in the past 24 hours. Cash buffer grows to $3 billion Strategy increased its US dollar reserve to $3 billion as of July 12, up from $2.55 billion a week earlier. The reserve is used to fund dividend payments on its preferred stock and interest payments on its outstanding debt. The reserve includes expected proceeds from MSTR shares sold through the company's ATM offering that had not yet settled as of the reporting date. Source: SEC Strategy has $23.8 billion of remaining capacity under its MSTR ATM offering, including capacity from a new $21 billion offering the company announced on March 23. The company said it may begin selling shares under the additional capacity once the existing offering is substantially depleted. Last week, Strategy announced it sold 3,588 BTC for about $216 million to replenish its US dollar reserve and fund preferred stock dividend payments. The transactions included the sale of 1,363 BTC at an average price of $59,256 between June 29 and June 30, followed by another 2,225 BTC at an average price of $60,773 between July 1 and July 5. In the same June 29 8-K filing, Strategy also reported no BTC purchases, while disclosing the sale of 12.7 million MSTR shares through its ATM offering, generating $1.15 billion in net proceeds. STRC moves to twice-monthly dividend schedule Strategy is boosting its USD reserve as it readies its first semi-monthly dividend payment to its STRC preferred stock holders on Wednesday. Under a new schedule announced on June 8, STRC will use record dates on the 15th and the last day of each month, with payments made on the following record date. The first semi-monthly record date was June 30, 2026, with the first payment date scheduled for July 15. Saylor Additionally, CoinTelegraph's Robert Lakin notes that Strategy co-founder and chairman Michael Saylor again took to social media on Sunday to offer his latest signal to investors, even as one analyst said Saylor’s messaging needed more clarity to help Bitcoin regain its momentum. “Orange dots tell only part of the story,” was Saylor’s message in a post that accompanied a chart from Saylortracker.com, similar to previous social media messages that have preceded news of Strategy's Bitcoin (BTC) purchases, typically announced the day after his posts. Need clarity in BTC pivot message to convince investors: StanChart Standard Charter’s global head of digital assets research, Geoff Kendrick, said Strategy’s recent actions - and Saylor's manner of communicating them - “are muddying the waters for BTC near-term.” “We think effective communication of MSTR’s new strategy (using BTC to back STRC) is key to reassuring markets that wholesale selling is unlikely; this should in turn support BTC prices,” Kendrick wrote in a note to clients on Friday. “Indeed, if this signalling proves effective, it should remove the need for MSTR to actually sell any BTC by supporting STRC’s price,” he said. StanChart sees inconsistencies in “never sell” approach Kendrick said that Strategy’s long-held “never sell” approach limited what the company could with its industry-biggest digital asset treasury. “The problem with the ‘never sell’ approach is that it limits what MSTR’s BTC holdings can do — or, perhaps more importantly, what they are perceived to be doing,” the StanChart analyst said. “MSTR has started to shift its communication strategy on this in recent months. It has sold BTC twice and recently announced a BTC monetization program.” Source: Standard Chartered Bank Still, he sees Strategy’s “market signaling” as potentially improving soon and bringing more clarity to the outlook for Bitcoin, on which StanChart maintains its $100,000 year-end forecast. Shares struggle from year low ahead of earnings report Investors who bought into the Strategy narrative have not had an easy time in the past 12 months. The STRC preferred shares were formulated to hold a price of $100 apiece. Shareholders saw that par value fall to the wayside last month, to the lowest value since the preferred stock was introduced a year ago. The common shares, trading under the MSTR ticker, have lost more than 70% of their value since July 2025, closing at $94.64 per share on Friday, down from a 52-week high of $457.22. The company is slated to report second-quarter earnings on July 30, with analysts consensus of $4.28 per share, according to Yahoo Finance data. Earnings have fallen short of analyst forecasts in six of the last eight quarters, according to Fintel.io data, including a 33.76% negative surprise in the first quarter of 2026. Tyler Durden Mon, 07/13/2026 - 11:20

Saylor's Strategy Sells 3,588 Bitcoin To Cover Preferred Dividends Authored by Micah Zimmerman via Bitcoin Magazine.com, Strategy sold 3,588 bitcoin for $216 million to fund dividends on its preferred securities, the company disclosed in a Form 8-K on July 6, 2026. The sale marks the largest bitcoin disposal in the company’s history and its most direct admission that its dividend obligations now shape its treasury. Chairman Michael Saylor posted about the transaction on social media. As of July 5, the company held 843,775 bitcoin in its reserves and $2.55 billion in cash. Saylor said the proceeds covered second-quarter dividends on four preferred instruments and the full June payment on a fifth. The disclosed sale funded quarterly dividends on STRF, STRE, STRK, and STRD. It also covered the monthly dividend on STRC. Together these securities form the core of what Strategy calls its Digital Credit business. Each instrument carries a distinct payout structure. STRF, the senior tier, pays a fixed 10% annual dividend on a $100 stated amount. STRE pays 10% a year on a €100 stated amount, denominated in euros.  STRK pays 8% and converts to common stock if shares reach $1,000. STRD pays 10% but is not cumulative, giving the board room to skip a payment.  STRC sits in the middle of the stack and pays a variable rate near 12%, reset to keep the security trading close to its $100 par. The board recently shifted STRC to semi-monthly payments. None of the preferred securities is backed by the company’s bitcoin. Each holds only a claim on residual assets. Why Strategy is selling Strategy is the largest corporate holder of bitcoin. The company has built its treasury through repeated stock and debt offerings. Its bitcoin sits at a cost basis near $63.9 billion, or roughly $75,700 a coin. That model created a growing cash bill. The preferred securities pay dividends in cash, not bitcoin. Strategy’s software business does not generate enough to cover them.  Grayscale’s head of research, Zach Pandl, estimated the annual dividend load at $1.5 billion. When cash reserves run short, the company must raise more capital or sell coins. For years Saylor pledged to never sell. That stance ended in late May 2026. Strategy sold 32 bitcoin for about $2.5 million, its first disposal since 2022, to fund preferred dividends.  The move broke the pledge and drew wide attention. Saylor framed it as a signal of commitment to preferred holders rather than a retreat from bitcoin. “Our goal is to make STRC the best credit instrument in the world,” he said at the time. The July sale dwarfs that first step. At 3,588 coins and $216 million, it is roughly a hundred times larger. According to the company’s latest filing, Strategy sold 3,588 Bitcoin between June 29 and July 5. About 1,363 Bitcoin were sold during the first two days of the program at an average price around $59,256, with another 2,225 Bitcoin sold over the following five days at $60,773. Buying and selling at once Strategy continues to accumulate even as it sells. After the May sale, the company bought 1,550 bitcoin for $101.3 million, nearly 50 times the size of the disposal. It made a $2 billion purchase in May and a $2.54 billion purchase in April.  The pattern shows a firm that funds dividends from its stack while adding to it through fresh capital raises. That approach depends on market access. Strategy can issue new preferred shares and common stock to raise cash. When those markets cooperate, the company avoids large sales. When they tighten, bitcoin becomes the source of funds.  The July disposal suggests the second condition held during the quarter. Last night, Saylor posted “Bitcoin is Digital Energy” on X, accompanied by Strategy’s orange-dot Bitcoin acquisition chart, prompting expectations that another SEC filing disclosing a new Bitcoin purchase is imminent. Traders have come to view these weekend posts as a recurring signal ahead of Strategy’s BTC accumulation announcements. This time, the announcement was about a bitcoin sale. At the time of writing, Strategy shares are down 2% in premarket and bitcoin has dipped below $62,000. Tyler Durden Mon, 07/06/2026 - 08:47

"Bitcoin Is Capital": Saylor's Strategy Says May Sell Up To $1.25 Billion Crypto To Fund Dividends Authored by Micah Zimmerman via BitcoinMagazine.com, Strategy Inc. (Nasdaq: MSTR), the world’s largest bitcoin treasury company, announced a sweeping capital management overhaul earlier today, introducing what it calls a Digital Credit Capital Framework. The announcement sent MSTR shares up 6% in pre-market trading and pushed bitcoin above $60,000. The framework has five parts: a board-approved USD reserve policy, a dividend rate increase on one class of preferred stock, a $1 billion buyback program for digital credit securities, a $1 billion buyback program for common stock, and a bitcoin monetization program that authorizes the sale of BTC to fund company obligations. Strategy’s bulked up USD Reserve At the center of the framework is a $2.55 billion USD reserve, cash and cash equivalents held to cover dividend payments and interest expense on the company’s debt. Strategy carries roughly $1.76 billion in annual preferred dividend and interest obligations, which means the current reserve represents 17.4 months of coverage. The board has set a floor: the reserve must stay at a minimum of 12 months of coverage at all times. Any reduction below that threshold requires explicit board authorization. The reserve can only be used for two purposes — paying preferred stock dividends and servicing interest on debt. Any other use of those funds also requires board approval. Beyond the cash reserve, Strategy is counting its bitcoin monetization capacity as part of its liquidity cushion. Combined, the $2.55 billion reserve and $1.25 billion in authorized BTC monetization capacity give the company $3.80 billion in total coverage — the equivalent of 25.9 months of preferred dividend and interest obligations. STRC dividend increase Strategy raised the dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock, known as STRC, by 50 basis points to 12% per year. The increase takes effect for dividend periods with record dates on or after July 1, 2026. A basis point is one one-hundredth of a percentage point, so the increase moves the rate from 11.5% to 12%. The company said its target is for STRC to trade between $99 and $100 over time, close to its $100 stated value. STRC has risen 9% on the news. Strategy said it will evaluate the STRC dividend rate on a monthly basis, taking into account trading levels, credit spreads, bitcoin price and volatility, and the overall state of its balance sheet. Two buyback programs The board authorized up to $1 billion in repurchases of its Digital Credit Securities — a category that includes STRC, STRF, STRK, and STRD, four series of preferred stock the company has issued. It also authorized up to $1 billion in buybacks of its Class A common stock. Neither program obligates the company to purchase any specific amount of securities, and both can be modified, suspended, or canceled at any time. Repurchases under both programs can be made through open-market purchases, block trades, private negotiations, or tender offers. CEO Phong Le framed the buyback programs as a shift in how Strategy operates. “Strategy is evolving from one-way capital issuance to active capital management,” he said. “We intend to move between issuing securities when capital is attractive and repurchasing securities when our instruments trade at levels that make buybacks accretive.” Neither buyback program will draw from the USD reserve. If Strategy funds buybacks through bitcoin sales, those sales fall under the BTC Monetization Program. The Bitcoin Monetization Program The Bitcoin Monetization Program authorizes Strategy to sell BTC for three specific purposes: to build or replenish the USD reserve (up to $1.25 billion), to fund preferred dividends and interest payments when management judges BTC sales more favorable than issuing new stock, and to fund buybacks of preferred or common stock. Any sale outside those three purposes requires a new board vote. We’re gonna need more charts. pic.twitter.com/xVASOEnSw8 — Michael Saylor (@saylor) June 28, 2026 The program does not obligate the company to sell any bitcoin. CFO Andrew Kang said the program gives Strategy a tool to use part of its bitcoin reserve without abandoning its core thesis. “Bitcoin is capital,” Kang said. “This program gives Strategy the flexibility to use a portion of its BTC Reserve to strengthen Digital Credit, fund dividend payments and interest expense, and fund accretive repurchases when BTC monetization is more favorable than issuing common equity.” Founder and Executive Chairman Michael Saylor said bitcoin remains the company’s primary treasury asset. “Digital Credit requires liquidity, discipline, and active capital management,” he said. “This framework is designed to strengthen credit quality and enable the Company to reduce expected preferred stock dividend payments when accretive.” Tyler Durden Mon, 06/29/2026 - 09:40

Michael Saylor’s Strategy unveiled a capital framework allowing Bitcoin sales to fund dividends, a $2.55 billion reserve and buybacks while raising STRC payout to 12%.