Strategy pauses its Bitcoin buying spree to hoard a massive $3 billion cash cushion
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- Strategy hasn't bought bitcoin since June 22 (last purchase: 520 BTC for ~$35M) and during the week ending July 5 sold 3,588 BTC in two tranches — 1,363 BTC for $80.8M on June 30 and 2,225 BTC for $135.2M — generating ~$216M and reducing holdings to 843,775 BTC.
- Strategy lifted its USD reserve to ~$3B on Monday (from $2.55B after the BTC sales), and against annualized preferred-stock dividends and debt interest of ~$1.76B, that stash delivers 20.4 months of coverage for its obligations.
- STRC, Strategy's perpetual preferred security, trades at ~$87 — down 0.5% on Monday but recovered from a late-June low near $70 — with its persistent discount to the $100 stated value showing investors still demand extra yield for bitcoin and liquidity risk.
- MSTR's enterprise mNAV is ~1.02, meaning the equity trades at barely a premium to net assets — a razor-thin buffer that makes the new cash cushion critical if a bear market closes off accretive equity issuance.
- The cash build is part of Strategy's bitcoin monetization framework, which also authorizes selling up to $1.25B in BTC specifically to fund dividend payments, designed to keep preferred distributions flowing through a potential cyclical low later this year.
Why it matters: With 20.4 months of dividend and interest coverage, Strategy can ride out a prolonged bitcoin downturn without forced BTC liquidations or unfavorable equity dilution — but an mNAV of just 1.02 leaves almost no equity cushion, so the $3B cash stash is now the company's primary defense against a bear scenario for both common and preferred holders.
