The firm raised $467 million via stock issuance to strengthen liquidity, prioritizing dividend and debt obligations over digital asset acquisitions.
Strategy increased its cash reserves to $3 billion by issuing $467 million in common stock, opting not to purchase Bitcoin for a third consecutive week. The move aims to secure liquidity for preferred stock dividends and debt interest payments, totaling $1.76 billion annually.
The firm’s cash reserves now cover over 20 months of obligations, reflecting a capital management strategy adopted weeks ago. Shares dipped 4% to $90.80 after the announcement, extending a 18% monthly decline but stabilizing above June’s 28-month low of $81.81.
Strategy’s preferred stock, Stretch (STRC), traded at $87.04, remaining below its $100 par value since mid-May. Analysts noted the cash infusion underscores a conservative approach amid market volatility.