Strategy increased its U.S. dollar reserve by $525 million to $3.75 billion, according to its July 27 Form 8-K. The company kept its Bitcoin holdings unchanged at 843,775 BTC while using proceeds from common-stock sales to strengthen liquidity and continue preferred-share repurchases.

Strategy said the cash reserve rose from $3.225 billion to $3.75 billion during the week ending July 26. The company uses the reserve to support preferred stock dividends and interest payments on outstanding debt. Michael Saylor confirmed the $525 million increase and said the expanded reserve covers 2.1 years of payments.

The larger cash balance gives Strategy more flexibility to meet dollar-denominated obligations without needing to sell Bitcoin immediately. That matters because the company’s treasury model combines a large Bitcoin position with liabilities that still have to be paid in cash. Strategy continues to treat Bitcoin as its primary treasury asset while building a liquidity buffer to manage those obligations in dollars.

Strategy reported no Bitcoin purchases or sales between July 20 and July 26. The pause marked the company’s fifth straight week without adding to its holdings. Strategy last bought 520 BTC on June 22 before shifting more attention toward reserve growth.

The company acquired its 843,775 BTC for about $63.69 billion, including fees and expenses. Its average purchase price is $75,476 per Bitcoin. Saylor shared a tracker showing the holdings valued at nearly $54.36 billion on July 26, implying a paper loss of about $9.47 billion.

Strategy still controls more than 4% of Bitcoin’s 21 million supply. The company has not reduced its position despite the decline in market value.

During the reporting week, Strategy sold 5,429,160 MSTR common shares through its at-the-market program. Those sales generated $544.5 million in net proceeds. The company sold no preferred shares through its ATM programs over the same period.

Strategy also repurchased 288,930 STRC preferred shares for $25 million. It did not buy any STRF, STRK, or STRD shares during the week. After the STRC transaction, the company said $975 million remained available under its digital credit securities repurchase program.

The MSTR common stock repurchase program still has $1 billion in available capacity. Strategy made no common stock repurchases during the week. Its remaining ATM capacity included $22.98 billion for MSTR and $17.51 billion for STRC.

Peter Schiff said Strategy’s Bitcoin yield could turn negative before the end of 2026. He argued that the company’s model may become less attractive if MSTR stops increasing Bitcoin exposure per share. Schiff also questioned why investors should assume corporate risk when they can buy Bitcoin directly.

Strategy’s Bitcoin yield fell from 13.3% to 4.5% within two months. Schiff used that decline to challenge the company’s capital strategy and its value proposition for shareholders. His remarks followed an MSTR price move after Strategy announced the larger dollar reserve.

Some market participants view the reserve as protection for preferred dividends and other dollar obligations, and the company’s latest actions fit that framework: cash was added, Bitcoin holdings were left unchanged, and STRC was supported through a $25 million repurchase during the reporting period. For investors watching the strategy, the key near-term point is whether Strategy continues to fund dollar commitments from its reserve and equity sales rather than from Bitcoin sales.

This article is for informational purposes only and does not constitute financial or investment advice.