Strategy pauses Bitcoin buys as cash reserve grows to $3.2B

Strategy's latest filings show a break in the playbook that many Bitcoin investors watch closely. The company sold more common stock, but instead of buying BTC, it added to its cash reserve. That left its quarter-to-date Bitcoin-per-share metrics in negative territory.

Between July 13 and July 19, Strategy issued 2.73 million Class A shares and raised $263.5 million. The company said its designated dollar reserve increased by $225 million to $3.225 billion. It bought no Bitcoin during the week, extending its pause to four straight weeks. Holdings stayed at 843,775 BTC.

The cash build appears tied to Strategy's preferred-stock business, which carries about $1.76 billion in expected annual dividends and interest expense. At current levels, the reserve covers about 22 months of those payments, above the 12-month minimum approved by the board in June. Part of that support is aimed at STRC, a preferred security with a $100 stated value and a 12% variable annual dividend, which has traded below par since mid-May.

The effect on Bitcoin exposure is clear in Strategy's own measures. Quarter to date, BTC Yield fell to -2.3%, BTC Gain to -19,247 BTC, and BTC dollar gain to -$1.2 billion. Over the past two weeks, the company issued more than 7.5 million common shares without increasing its Bitcoin balance.