Michael Saylor's Strategy Buys More Bitcoin, Boosts Dollar Reserve as Preferred Stock Slips

Michael Saylor’s Strategy has expanded its Bitcoin holdings and increased its US dollar reserve after its perpetual preferred stock STRC slipped below $90.

Strategy acquired 520 Bitcoin (BTC) for $34.9 million between June 15 and Sunday, according to a Monday 8-K filing with the US Securities and Exchange Commission. The purchase was made at an average price of $67,068 per BTC, bringing Strategy’s total Bitcoin holdings to 847,363 BTC.

Strategy's cumulative purchases now total $64.1 billion, giving the company an average acquisition cost of $75,651 per Bitcoin.

Strategy said on X that it added $300 million to its US dollar reserve, bringing the total to $1.4 billion. According to the company's 8-K filing, the figure includes expected cash proceeds from its at-the-market (ATM) share sales that had not yet settled.

Source: Strategy

Strategy's financing decisions are closely watched because the company is the largest corporate holder of Bitcoin and one of the market's most active buyers. The firm's funding model has also become a template for a growing number of Bitcoin treasury companies.

MSTR share sales fund Bitcoin purchase and USD reserve

Strategy funded its latest Bitcoin purchase and liquidity reserve using proceeds from sales of its Class A common stock (MSTR). The company raised $335.5 million through its ATM equity program during the reporting period.

While $34.9 million of the proceeds was used to buy 520 Bitcoin, $300 million was allocated to Strategy’s US dollar reserve, which is designed to support dividend payments and debt obligations.

Source: SEC

“Strategy plans to continue replenishing the USD Reserve over time based on market conditions to support the credit quality of its Digital Credit securities,” the company said in the 8-K filing.

MSTR and STRC tumble at Thursday's close

Ongoing volatility in Strategy’s shares and preferred stock continued to draw market attention, particularly as STRC, which is designed to trade near $100, fell below $90 last week.

MSTR dropped 3.46% to $112.53 at Thursday's close ahead of Friday's market holiday, according to Yahoo Finance data. STRC, the company’s perpetual preferred stock, slipped 0.46% to $88.59 at Thursday's close. It traded at $90.59 during Monday's premarket session.

Bitcoin advocate Samson Mow said on X on Monday that STRC has a “self-repairing mechanism” that activates when the security trades below its $100 reference level. He said that when the price falls below that level, the company stops issuing new shares through its ATM program, which limits new supply.

Related: Bitcoin doesn't need Ethereum-style yield, says Strategy's Michael Saylor

Mow added that lower prices effectively increase the yield for buyers relative to their purchase price, which can encourage demand and help push the price back toward $100. He described the structure as relying on market incentives rather than active intervention from Strategy to maintain stability.