Strategy raised approximately $466.7 million by selling nearly 4.82 million MSTR shares through its at-the-market [ATM] equity programme. This increases its U.S. dollar reserve to $3.0 billion without selling additional Bitcoin.
The disclosure came after Executive Chairman Michael Saylor announced the larger cash reserve on X.
This prompted debate among investors over why the company chose to issue more equity rather than sell Bitcoin after recently disposing of part of its holdings to fund preferred stock dividends.
Strategy raises cash through equity while keeping Bitcoin holdings unchanged
According to a Form 8-K filed on July 13, Strategy sold 4,818,781 Class A common shares during the week ended July 12. It generated $466.7 million in net proceeds through its ATM programme.
The company did not issue any of its preferred securities—STRF, STRC, STRK or STRD—during the reporting period.
The filing also confirmed that Strategy made no Bitcoin purchases or sales between July 6 and July 12, leaving its holdings unchanged at 843,775 BTC with an aggregate purchase price of $63.69 billion.
Strategy said its $3.0 billion U.S. dollar reserve includes expected proceeds from ATM share sales that had not yet settled as of July 12. The company said the reserve is maintained to support dividend payments on its preferred stock and interest payments on outstanding debt.
Equity funding sparks fresh debate over capital allocation
The filing followed Saylor’s announcement that Strategy had increased its U.S. dollar reserve by $450 million. The post triggered questions from investors about how the additional cash had been raised.
Among the responses was long-time Bitcoin critic Peter Schiff. He questioned why Strategy issued additional MSTR shares instead of selling Bitcoin after recently disposing of 3,588 BTC to fund preferred stock dividends.
Schiff argued that issuing shares at what he described as a discount to the company’s Bitcoin-backed value diluted existing shareholders unnecessarily.
Other market participants similarly asked where the additional cash had come from and why Strategy opted for equity issuance rather than further Bitcoin sales.
The 8-K filing answered those questions by showing the increase came entirely from MSTR share sales while the company’s Bitcoin holdings remained unchanged.
Why Strategy chose equity over Bitcoin
The filing does not explain why Strategy preferred issuing common shares to selling additional Bitcoin.
However, the decision is consistent with the company’s long-standing strategy of treating Bitcoin as a long-term treasury asset while using capital markets to fund operations, acquisitions and shareholder obligations.
By preserving its Bitcoin holdings, Strategy maintains exposure to Bitcoin’s price appreciation, though issuing new equity can dilute existing shareholders. The trade-off has become a recurring point of debate as the company expands its Bitcoin treasury strategy.
Final Summary
- Strategy raised approximately $466.7 million by selling 4.82 million MSTR shares, increasing its U.S. dollar reserve to $3.0 billion without selling additional Bitcoin.
- The filing prompted renewed debate over Strategy’s capital allocation after investors questioned why the company chose equity issuance instead of further Bitcoin sales.
