Key Takeaways
Between July 6 and July 12, Strategy executed an at-the-market offering, selling 4.8 million shares of MSTR for $466.7 million
The company’s Bitcoin portfolio stayed at 843,775 BTC, with an average acquisition cost of $75,476 per token
Cash reserves jumped approximately 18% to reach $3 billion, providing dividend coverage extending beyond 20 months
Wall Street firms Benchmark and TD Cowen reaffirmed Buy recommendations, setting targets at $570 and $260 respectively
Shares dropped roughly 3% to the $91.50–$91.80 range in pre-market trading Monday
Last week, Strategy raised $466.7 million through an equity offering while abstaining from Bitcoin purchases — a decision that’s drawing praise from Wall Street analysts.
Strategy Inc, MSTR
Ahead of Monday’s Nasdaq session, MSTR stock traded down approximately 3% in the $91.50–$91.80 range, per data from Yahoo Finance and The Block. Bitcoin experienced similar weakness, declining over 2% in the past 24 hours to approximately $62,580.
The equity transaction occurred through Strategy’s at-the-market program during the July 6–12 window, moving 4.8 million Class A shares. Monday’s SEC 8-K filing revealed the details of this capital raise.
Notably, Strategy refrained from any Bitcoin transactions throughout this timeframe. The company maintains its position of 843,775 coins, purchased at a $75,476 average cost basis.
This strategic move elevated Strategy’s dollar reserves by roughly 18% week-over-week, climbing from $2.55 billion to $3 billion by July 12.
Wall Street Endorses the Approach
Both Benchmark and TD Cowen released research notes Monday supporting the company’s decision.
TD Cowen maintained its Buy stance with a $260 target price. Analyst Lance Vitanza characterized the 8-K disclosure as “an early indication that management is beginning to execute against the framework” outlined during a recent investor presentation. The firm highlighted the expanded cash position and absence of Bitcoin purchases as evidence of “greater balance-sheet discipline.”
Benchmark similarly upheld its Buy rating, though analyst Mark Palmer established a significantly more aggressive $570 price objective. Palmer framed the equity sale as constructing a “dividend war chest,” emphasizing that current reserves can sustain the company’s annual dividend commitments for more than 20 months.
Neither research team views the Bitcoin purchase pause negatively. Both emphasized that investors should concentrate on Strategy’s objective of increasing Bitcoin-per-share metrics while maintaining the stability of its preferred equity financing structure.
Available Capital Capacity
Strategy retains $23.8 billion in untapped capacity within its MSTR ATM program. This figure incorporates $21 billion from a fresh facility unveiled March 23. Management indicated it might access this additional capacity as the current offering approaches full utilization.
This development follows Strategy’s recent sale of 3,588 BTC — valued at roughly $216 million — executed to replenish reserves and support preferred share dividend distributions. These transactions occurred from June 29 through July 5, at average prices of $59,256 and $60,773 per Bitcoin.
Strategy is also gearing up for its inaugural semi-monthly STRC preferred dividend distribution on July 15, following the twice-monthly payment schedule introduced June 8.
In its June 29 regulatory filing, Strategy disclosed selling 12.7 million MSTR shares generating $1.15 billion in net proceeds, again without any corresponding Bitcoin acquisitions during that period.
