The company reported that the reserve now covers 2.1 years of dividend payments and interest on outstanding preferred shares and debt obligations.
Executive Chairman Michael Saylor confirmed this information on X, writing that Strategy increased its U.S. dollar reserve by $525 million, "providing 2.1 years of dividend coverage." He added that the company holds 843,775 $BTC in its bitcoin reserve alongside a cash buffer of $3.75 billion.
Bitcoin Asset Holdings Remain Stable
According to the report, there were no new bitcoin purchases during the week of July 20-26. Strategy's total asset holdings remained unchanged at 843,775 $BTC, acquired for a total of $63.69 billion at an average cost of $75,476 per coin.
According to a chart from Strategytracker.com, posted by Saylor, the market value of the reserve as of July 26 was $54.36 billion, approximately 14.84% below the average cost basis, representing a paper loss of about $9.47 billion at current prices.
Saylor Hinted at This Move a Day Before Announcement
On Sunday, Saylor posted "We're going to need another color" along with the same tracker chart, hinting at the growing marks for bitcoin purchases on the chart. This post appeared 23 hours before the reserve announcement on Monday.
Preferred Share Buyback Continues
During the week, Strategy bought back 288,930 STRC preferred shares for $25 million. No STRF, $STRK, or STRD shares were bought back.
The company reported that $975 million remains available under the Digital Credit Security Purchase Program, first announced on June 29. Additionally, $1 billion remains available under the MSTR common stock buyback program, although no common shares were bought back this week.
Share Sale to Replenish Reserve
Strategy sold 5,429,160 shares of MSTR common stock under its at-the-market program, generating net proceeds of $544.5 million. No preferred shares were sold under the at-the-market program during this period.
The remaining limit under the at-the-market program was $1.62 billion for STRF, $17.51 billion for STRC, $2.10 billion for $STRK, $4.01 billion for STRD, and $22.98 billion for MSTR common stock.
What This Means for Investors
For Strategy's preferred shareholders, the increased reserve extends the period of dividend payments without needing to resort to new bitcoin sales. The unchanged bitcoin asset holdings, despite the unrealized loss shown on the tracker chart, indicate the company is not adjusting its position in response to price fluctuations.
The document was signed by Thomas C. Chow, Executive Vice President and General Counsel of Strategy, and filed pursuant to Section 7.01 of the Exchange Act.
