Strategy Raises $335.5M, Puts $300M Into Cash Reserve

Between June 15 and June 21, Strategy sold about 2.71 million shares of its common stock, raising $335.5 million. The company placed $300 million into its U.S. dollar reserve to backstop its STRC perpetual preferred securities and used $34.9 million to purchase 520 Bitcoin.

The allocation followed a sharp selloff in STRC preferreds, which fell to an intraday low near $82.50 after generally trading close to their $100 stated value. STRC carries about $10.5 billion in stated value outstanding and pays an annualized dividend of 11.5%.

Strategy did not issue new STRC during the week. The company typically issues STRC when the security trades at or above its $100 stated value; with STRC below that level, the preferred channel provided less capital for purchases. Strategy instead used its at-the-market program for MSTR common stock to raise cash while avoiding issuing preferred shares at a discount that would increase dividend obligations measured against the $100 stated value.

The $300 million addition lifted the U.S. dollar reserve to $1.4 billion. The 520 Bitcoin purchase was smaller than the 1,587 coins Strategy acquired the prior week. The company directed most proceeds into cash to cover dividends and interest across its expanding capital structure rather than allocate a larger share to Bitcoin.

The common-stock sales increased diluted share count to about 388.6 million from 386.1 million a week earlier. Strategy’s internal BTC Yield metric, which measures Bitcoin holdings relative to diluted shares, declined to 11.8% from 13% four weeks earlier.

STRC initially recovered above $91 after the reserve announcement but later closed at $88.64. MSTR closed 2.7% lower at $109.52. Market participants pointed to forced liquidations by leveraged holders as a contributing factor in the preferreds’ selloff, along with sensitivity to Bitcoin prices, liquidity and interest rates.

Quinn Thompson, chief investment officer at Lekker Capital, praised the use of common-stock issuance to build cash, calling it “exactly what we’ve been advocating for — use MSTR issuance to raise cash to bolster the balance sheet.” He warned that additional common issuance could continue to pressure the MSTR share price. Samson Mow, chief executive of JAN3, described the STRC discount-yield dynamic as a “self-repairing mechanism.” Strategy Chief Executive Phong Le disclosed a $1 million personal purchase of STRC and indicated he planned to hold the position until it reached $100.

Strategy has acquired roughly 174,300 Bitcoin so far this year, with internal and external estimates suggesting about 96,000 of those were financed through STRC issuance. Company filings show about $25.4 billion available under MSTR issuance programs and $17.5 billion under the STRC program. With STRC trading below stated value, the preferred channel is unlikely to be used aggressively until the security recovers, leaving common stock as the more immediate source of capital.