MicroStrategy Raises Cash to $3.75B, Keeps Bitcoin Holdings Flat

MicroStrategy has lifted its cash reserve to $3.75 billion while leaving its Bitcoin position unchanged, according to a July 27 filing, signaling a near-term focus on liquidity rather than further BTC accumulation. Cash reserve climbs: The company increased its U.S. dollar reserve by $525 million to $3.75 billion. Management said that amount equals about 2.1 years (roughly 25 months) of preferred-stock dividend coverage based on its internal calculation. The filing emphasized this is a managerial metric and not a guarantee across all market conditions. Bitcoin holdings unchanged: MicroStrategy held 843,775 BTC through July 26. The position reflects a total purchase cost of $63.69 billion, including fees, implying an average acquisition price of $75,476 per coin. No BTC purchases for the week: The filing reported no Bitcoin buys between July 20 and July 26, extending the company's recent pause in accumulation. ATM stock sales boost liquidity: MicroStrategy sold 5,429,160 shares of MSTR common stock via its at-the-market (ATM) program during the week, generating $544.5 million in net proceeds. The $3.75 billion cash figure includes expected proceeds from shares that had not settled as of July 26. Remaining issuance capacity: After the week's sales, MicroStrategy still had about $22.98 billion available under its MSTR stock-offering programs, leaving room to raise additional cash if needed. Any future issuance would dilute existing common shareholders. Preferred repurchases: The company repurchased 288,930 STRC preferred shares for $25 million during the week. It retains $975 million of authorization under its preferred-stock buyback program and $1 billion under its common-stock repurchase program. No STRF, STRK, STRD, or MSTR common shares were repurchased during the period. Recent BTC sales: MicroStrategy is 3,588 BTC below the 847,363 BTC it held in late June after selling that amount for about $216 million between June 29 and July 5. The sales followed a policy update permitting selective Bitcoin sales to fund dividends, interest, and reserve needs, marking a shift from the firm's long-running buy-and-hold posture. Internal risk model: The company publishes a proprietary internal "BTC Rating" intended to model downside and coverage. MicroStrategy said Bitcoin could decline 11.4% annually for 5.8 years and still maintain 1.0x coverage of net debt and preferred stock. The metric is not issued by an independent credit rating agency. Market backdrop: JPMorgan has previously suggested that maintaining two to three years of cash coverage could reduce the risk that MicroStrategy would need to sell Bitcoin to meet preferred dividends. The company's 2.1-year estimate sits within that range, while noting refinancing costs, dividend rates, share prices, and Bitcoin volatility could alter the outlook. Why it matters: As the largest disclosed corporate holder of Bitcoin, MicroStrategy's filing reframes the story from BTC accumulation to liquidity management. By directing ATM proceeds into cash and repurchasing some preferred shares, the company aims to better fund scheduled distributions without immediately selling more BTC. The cash is not legally ring-fenced, and dividends still require board approval, so the balance is not a guaranteed backstop—but it may ease near-term pressure to monetize Bitcoin holdings. What to watch: Weekly Form 8-K filings will indicate whether the company continues channeling stock-sale proceeds into cash or returns to buying Bitcoin. MicroStrategy has not said when it may resume BTC purchases.