Strategy raises $263.5M through MSTR sales, holds 843,775 Bitcoin

Strategy, the largest corporate holder of Bitcoin, recently raised $263.5 million by selling 2.73 million shares of its Class A common stock (MSTR) through its at-the-market (ATM) program between July 13 and July 19, according to a US SEC filing. The company did not buy or sell any Bitcoin in this period, maintaining its holdings at 843,775 BTC acquired at an average cost of $75,476 per Bitcoin, while the market price stood near $64,657. This sale increased Strategy’s cash reserve to $3.225 billion, a 7.5% rise from $3 billion the previous week. The cash reserve funds dividends on the company’s preferred stock and interest on outstanding debt.

In the prior week, Strategy had also raised $466.7 million through MSTR stock sales but again made no Bitcoin transactions. The company still has about $23.5 billion capacity remaining under its common stock ATM program, allowing flexibility for additional capital raising in the future. Importantly, Strategy did not sell any shares of its preferred stock during these periods, although it has increasingly relied on preferred stock offerings alongside common stock sales to finance its Bitcoin treasury strategy.

There is an ongoing investor debate about the valuation of Strategy’s preferred stock, specifically its STRC series. The STRC preferred stock closed at $85.29 recently, while MSTR shares were priced at $94.85. Credit investor Khing Oei suggested on social media that STRC may be undervalued by the market, which treats it primarily as a 14% yield instrument rather than appropriately valuing its future cash flow potential. Oei’s bond-like valuation model estimates STRC could be worth around $96 even if Bitcoin’s value remains flat, based on Strategy’s capacity to support dividend payments long term.

This development matters because Strategy continues to use both common and preferred stock sales to fund its Bitcoin holdings, impacting its capital structure and cash position. The ongoing valuation discussion around preferred stock reflects market uncertainty about how to price financial instruments tied closely to cryptocurrency assets. The company’s substantial Bitcoin inventory and capital raising efforts place it in a notable position within the crypto investment landscape.