Strategy, the business intelligence firm that has built the largest corporate Bitcoin treasury, continued adjusting its capital structure last week through a combination of stock sales and preferred share repurchases.
Strategy sold 5,429,160 shares of its Class A common stock (MSTR) through its at-the-market (ATM) offering program between July 20 and July 26, generating $544.5 million in net proceeds.
The MSTR share price was up more than 2% in Monday’s premarket activity, according to Yahoo Finance. The STRC preferred shares were up 2.3% to $88.90 ahead of the Nasdaq open.
The company also repurchased 288,930 shares of its STRC preferred stock for $25 million, according to a Form 8-K filed with the US Securities and Exchange Commission on Monday.
The update comes after Strategy executive chairman Michael Saylor sparked speculation on Sunday with his “We’re gonna need another color” post on X, which some market observers interpreted as a hint at a new move involving the company’s preferred stock strategy.
Source: Michael Saylor on X.com
Stock sales boost dollar reserve $3.75B
Following additional capital raised through its ATM stock offering program, Strategy increased its US dollar reserve to $3.75 billion as of July 26, up from $3.225 billion the previous week.
However, Strategy reported no Bitcoin purchases or sales during the July 20-26 period, leaving its holdings unchanged at 843,775 BTC, acquired at an average purchase price of $75,476 per Bitcoin, or $63.69 billion in aggregate. The biggest crypto was last trading hands at roughly $64,971 at time of publication.
Related: Strive’s SATA recovers most of June decline, trades within 3% of par
Strategy’s growing cash reserve highlights management’s efforts to maintain liquidity as it expands its capital markets activity through common stock offerings and preferred stock instruments. The reserve is intended to support dividend payments on preferred stock and interest payments on the company’s outstanding debt.
Saylor sparks debate over BTC future role for banks
The update came shortly after Saylor reignited a debate over whether banks have a place in Bitcoin’s future after arguing that the crypto asset’s growth depends on integration with traditional financial institutions.
Saylor wrote on X on Sunday that rejecting Bitcoin’s links to financial infrastructure would deny access to most potential users. His comments drew criticism from some BTC supporters, who contend that greater involvement from banks conflicts with the network’s original goal of enabling transactions without intermediaries.
Several users pushed back against Saylor’s argument by citing Bitcoin’s white paper, which introduced the asset as a peer-to-peer electronic cash system designed to remove the need for financial institutions. The exchange highlighted a growing divide between advocates who view banks as necessary gateways for mainstream adoption and those who see them as a threat to Bitcoin’s decentralized foundation.
Magazine: Strategy became a symbol of the dot-com crash: Could history repeat?
