MSTR jumps 6% as cash reserve hits $3.75B, maintains Bitcoin holdings

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Why did Strategy stop buying additional Bitcoin for the past 5 consecutive weeks?

What is the significance of the cash liquidity secured by Strategy through stock sales?

Why do some experts view the cash procurement through stock sales positively?

MSTR jumps 6% as cash reserve hits $3.75B, maintains Bitcoin holdings — Image source: Unblock Media

Strategy Inc. boosts USD cash reserves to $3.75 billion following $525 million capital raise.
No new Bitcoin purchases in five weeks as MSTR focuses on shareholder value and dividend coverage.

On July 27, 2026, Cryptopolitan reported that Strategy Inc. (MSTR) increased its USD cash reserves by $525 million to a total of $3.75 billion, strengthening its financial position. This move, disclosed in a Form 8-K filing and confirmed by CEO Michael Saylor, was accomplished by selling 5.4 million common shares for $544.5 million and repurchasing 288,930 shares of STRC preferred stock for $25 million.

The company’s announcement sparked a 6.44% rise in MSTR stock, which closed at $97.46, reflecting renewed investor confidence amid a redirected capital allocation strategy. Notably, Strategy Inc. has not purchased additional Bitcoin for the past five weeks. Its continuing holding stands at 843,775 BTC, valued at approximately $54 billion, with paper losses now exceeding $8 billion.

Rather than deploying the new capital to expand its Bitcoin position or liquidate any holdings, Strategy Inc. concentrated on repurchasing preferred stock and securing USD coverage for dividends and interest payments through 2028. This strategy aims to fortify the company's solvency and operational commitments. However, critics such as Peter Schiff argue that the share sale dilutes Bitcoin-per-share value and raises future dividend obligations, exacerbating the tension between balance sheet health and shareholder returns.

Analyst consensus targets suggest potential price appreciation for MSTR, with forecasts around $360 per share—an upside of over 290%. Strategy Inc. is scheduled to report Q2 earnings on July 30, with expectations for a $121.88 million result, a 6.40% increase. Observers from CryptoQuant and FXStreet noted that by retaining its Bitcoin holdings, the company avoided realizing approximately $10.6 billion in paper losses.

Structural risks highlighted by analysts at Memeburn and TradingView focus on dilution, the relationship between Bitcoin holdings and net asset value, and heightened dividend obligations. These factors remain key points of debate among shareholders and market watchers.

As of July 27, 2026, 15:09 UTC, Bitcoin (BTC) trades at $64,584.76, with 24-hour volume down 0.08%, according to Market Survey.