Strategy's MSTR sales raised $263.5 million and held 843,775 BTC positions

Strategy raised US$263.5 million through MSTR stock sales, leaving its Bitcoin position unchanged at 843,775.

As the largest corporate Bitcoin holder, Strategy continues to fund its Bitcoin reserve strategy but has not changed its BTC position. In a new filing with the U.S. Securities and Exchange Commission (SEC), the company details the new funding it received through the sale of Class A common stock through a market-to-market offering (ATM) program, while reporting that it did not conduct any Bitcoin purchases and sales during the reporting period.

Strategy raised $263.5 million from the sale of MicroStrategy (MSTR) common stock between July 13 and July 19, according to Form 8-K filed with the SEC. The document also showed that Strategy's Bitcoin position remained stable at 843,775 BTC, with a total purchase price of US$63.69 billion, and an average acquisition cost of US$75,476. As of reporting time, Bitcoin was trading at approximately US$64,657.

Key Points

Strategy sold $263.5 million worth of MSTR common stock through its ATM program between July 13 and July 19. There were no bitcoin transactions during the same reporting period, and BTC positions remained unchanged at 843,775. The company's dollar reserves increased to $3.225 billion, partly due to expected (unsettled) gains from stock sales. During the reporting period, Strategy did not use the preferred stock ATM program, although debate over its preferred stock valuation continued.

Accumulated cash through MSTR sales, BTC positions remained unchanged

Strategy's latest document focuses mainly on fundraising activities rather than changes in its Bitcoin reserves. Under its common stock ATM program, the company sold MSTR shares in the week ended July 19 for a gain of $263.5 million, SEC filings show. For investors tracking Strategy's spot BTC accumulation, it is important that the company reported that it did not buy or sell any bitcoin during the reporting period. As a result, its BTC balance remained at 843,775 pieces. This is critical because Strategy's overall strategy is often evaluated by whether new financing directly translates into additional Bitcoin purchases. In this case, the answer is: Not for a particular week.

The company also disclosed its accounting background: the total purchase price of BTC it holds is US$63.69 billion, and the average acquisition cost is US$75,476. This cost basis continues to serve as a key reference point for the market to measure Bitcoin's performance when its price fluctuates.

Reserves increased to US$3.225 billion, and funds were clearly used

Although BTC positions remain unchanged, Strategy's liquidity has increased. After selling about 2.73 million MSTR shares, the company increased its U.S. dollar reserves to $3.225 billion, a 7.5% increase from $3 billion the previous week. Strategy documents show that the reserve includes unsettled expected earnings from MSTR stock sales. The company said the funds were used to meet actual financing needs related to its capital structure, including preferred stock dividends and interest payments on outstanding debt. This distinction between "expected returns" and settled cash can be important to readers assessing whether money can flow quickly to dividends and debt repayments, especially during periods when stock sales outpace settlement times.

This update also continues the pattern of the previous week. In last week's 8-K filing, Strategy also reported that instead of making Bitcoin purchases, it raised $466.7 million through the MSTR ATM program. Similarly, the company did not sell shares through any preferred stock ATM program during both reporting periods. Strategy also reported that its common stock ATM program still has approximately $23.5 billion in remaining capacity, which would provide it with room to raise additional capital if market conditions allow further sales.

Preferred Stock Valuation Dispute Resurrection: "Income Products" or Cash Flow Bonds

In addition to the funding mechanism, investors are still debating how to value Strategy's preferred stock, which is usually traded under the symbol STRC. According to market data, STRC closed at $85.29 on Friday, while MSTR closed at $94.85 on the day. Credit investor Khing Oei pointed out potential pricing errors in an X post on Sunday. He believes STRC may be undervalued because the market appears to view the security primarily as a simple "14% yield" instrument rather than valuing its future cash flow expectations. Oei said STRC should be treated more like bonds and emphasized that investors typically do not measure fixed-income instruments simply by dividing the next coupon by the current price. He cited a model that showed that even if the price of Bitcoin stopped rising, the value of STRC could be around $96, provided Strategy can continue to support dividend payments for decades. In Oei's view, leverage is a key driver of STRC price performance. If Bitcoin strengthens and improves Strategy's balance sheet, he believes the STRC could be close to its $100 face value.

For investors, this is a core contradiction: Strategy's BTC reserve model can support preferred stock dividends under different market conditions, but preferred stock pricing depends not only on current BTC levels, but also on long-term coverage expectations, leverage dynamics, and the speed with which the market reprices the risks implicit in the cash flow structure.

Follow-up focus: Strategy continues to raise liquidity, what is the next step

Strategy's latest document presents a familiar pattern: raising liquidity through sales of MSTR-related stocks, while BTC positions remained unchanged during the reporting period. Recent questions among market participants are whether future ATM activity will continue to translate into additional Bitcoin purchases, and whether the debate over STRC valuation will diminish as cash flow expectations and leverage assumptions evolve.