Strategy pauses Bitcoin purchases and boosts cash reserve

Strategy has paused its bitcoin buying and sharply increased its U.S. dollar reserves, signaling a shift toward balance sheet flexibility as market pressure builds.

Cash reserves rise as bitcoin buying pauses

A filing with the Securities and Exchange Commission shows the company halted bitcoin purchases between June 22 and June 28, lifting its cash reserve to $2.55 billion from $1.4 billion a week earlier. The increase was funded largely through at-the-market sales of its Class A shares, MSTR.

During the same period, Strategy sold 12,669,017 shares, raising about $1.15 billion. It still has roughly $24.3 billion in issuance capacity remaining.

The company said its bitcoin holdings remain unchanged at 847,363 BTC, acquired for $64.1 billion at an average price of $75,651 per coin.

Portfolio under pressure amid falling prices

At current market levels, Strategy’s bitcoin stack is valued near $51 billion, leaving it with unrealized losses of about $13 billion. The holdings account for more than 4 percent of Bitcoin’s fixed 21 million supply.

The pressure is also visible in its securities. MSTR has dropped 30 percent over five sessions to $82.31, its lowest since early 2024 and far below its July 2025 peak of $455.90. Preferred shares tied to STRC also declined sharply during the week before a modest rebound.

Data shows the company’s enterprise modified net asset value ratio has slipped below 1, indicating its market valuation is now slightly below the value of its underlying bitcoin.

New framework introduces bitcoin sales option

Strategy has introduced a Digital Credit Capital Framework that tightly controls how reserves are used. The cash buffer is restricted to covering preferred dividends and interest payments, with a required minimum equal to 12 months of projected obligations.

A key addition is a formal BTC Monetization Program, allowing the company to periodically sell bitcoin to replenish reserves or meet financial commitments. This marks a shift from its long-standing accumulation strategy to a more active treasury approach.

The company has also approved a $1 billion digital credit repurchase program, alongside a separate $1 billion share buyback plan for MSTR, though the latter will not draw from core reserves.

Dividend changes and credit support measures

Strategy adjusted its STRC dividend policy to a monthly review tied to market conditions, credit spreads, and bitcoin volatility. Executive Chairman Michael Saylor confirmed a 50 basis point increase, bringing the dividend rate to 12 percent for July 2026 record dates.

These steps appear aimed at stabilizing credit instruments that have faced sustained selling pressure.

Broader market weakness adds to uncertainty

The company’s strategic shift comes as crypto markets show heightened stress. Sentiment indicators point to “Extreme Fear,” while Bitcoin recently fell below its 200-week moving average for the first time since the 2022 downturn. At the same time, ETFs have recorded ten consecutive days of outflows totaling nearly $3 billion.

Across public markets, 199 companies now hold bitcoin in treasury structures. Major holders include Twenty One with 43,514 BTC, Metaplanet with 40,177 BTC, MARA with 36,303 BTC, and Bitcoin Standard Treasury Company with 30,021 BTC.

Market implications of a potential seller

Strategy’s move to formalize bitcoin sales introduces a new supply factor for traders to consider. The program allows for up to $1.25 billion in potential sales, creating added pressure in a market already facing weak demand.

While buybacks and higher dividends may support its own securities, the possibility that the largest corporate bitcoin holder could become a periodic seller complicates the near-term outlook.

The shift also contrasts with recent public comments from Saylor suggesting further bitcoin purchases, leaving traders to weigh mixed signals about the company’s next move.