Strategy has increased its cash reserves by $300 million while adding 520 Bitcoin worth roughly $35 million, highlighting a growing focus on liquidity alongside continued cryptocurrency purchases.
Summary
- Strategy bought 520 Bitcoin for $35 million, raising its total holdings to 847,363 BTC.
- A June 22 filing showed the company increased cash reserves by $300 million to $1.4 billion.
- Debate over STRC intensified as critics questioned Strategy’s capital structure despite Saylor’s defense.
According to a June 22 filing, the company acquired 520 Bitcoin at an average price of $67,068 per coin, bringing its total holdings to 847,363 BTC.
The purchase followed a familiar signal from Executive Chairman Michael Saylor, who posted “Looks better with more dots” on X a day earlier alongside Strategy’s Bitcoin acquisition chart, a graphic that traders closely watch for clues about upcoming purchases.
Although the latest acquisition extended Strategy’s accumulation streak, the filing showed a much larger movement elsewhere on the balance sheet. Cash reserves increased by $300 million to $1.4 billion after the company sold 2.71 million MSTR shares for approximately $335.5 million during the previous week.
Cash reserves take center stage
In the filing, Strategy said it plans to continue replenishing its USD Reserve to support the credit quality of its Digital Credit securities. The disclosure arrived as investors remain focused on STRC, the company’s preferred stock, which recently traded well below its $100 par value.
Only a small portion of the proceeds raised from the MSTR share sale appears to have been directed toward the latest Bitcoin purchase. The remainder was largely retained as cash, a move that has fueled discussion among market participants about whether supporting STRC has become a more immediate priority.
Some investors expect Strategy to increase STRC’s dividend rate to improve demand and help the preferred shares recover toward par value. Others have suggested stock buybacks as another possible option.
Earlier on June 21, Saylor defended the company’s financing model as criticism surrounding STRC intensified. According to comments shared by Saylor, Strategy’s combined Bitcoin and cash holdings exceed its outstanding debt by roughly $48 billion. He also stated that the company has raised more than $60 billion in capital since 2022 and deployed those funds into Bitcoin purchases.
Critics question the capital structure
Meanwhile, debate around Strategy’s financing approach has intensified as the company continues to issue securities while expanding its Bitcoin treasury.
Long-time Bitcoin critic Peter Schiff argued that investors could eventually pursue legal action against Strategy and Saylor. Schiff also claimed that the way STRC was promoted may have violated SEC marketing rules, though no regulatory findings supporting that allegation have been announced.
Separate concerns have come from institutional investors. As previously reported by crypto.news, Arca Chief Investment Officer Jeff Dorman suggested that Strategy could ultimately need to sell between $3 billion and $4 billion worth of Bitcoin to relieve pressure on its capital structure and support STRC holders.
The discussion comes as Strategy’s purchases remain closely tied to market sentiment. Earlier this month, the company briefly interrupted its long-running accumulation pattern with a small Bitcoin sale before resuming purchases. Strategy later said the transaction did not alter its long-term Bitcoin strategy.
Despite criticism surrounding the company’s funding model and ongoing MSTR share sales, investors appeared to welcome the latest Bitcoin acquisition. MSTR shares rose 3.44% to $116.40 in pre-market trading on June 22, extending gains after Saylor confirmed the newest addition to Strategy’s Bitcoin reserves.