Strategy, the Bitcoin-focused entity under MicroStrategy (MSTR), raised $466.7 million by selling 4.8 million MSTR Class A shares through its at-the-market (ATM) equity offering between July 6 and July 12, according to an SEC Form 8-K filed Monday. Notably, the company did not buy or sell any Bitcoin during this period, maintaining its holdings at 843,775 BTC with an average acquisition price of $75,476 per coin.
The equity raise lifted Strategy’s U.S. dollar reserve to $3 billion—up from $2.55 billion just a week earlier—as it prepares for its first semi-monthly dividend payment on STRC preferred stock scheduled for Wednesday, July 15.
Equity Over Bitcoin: A Strategic Shift
The most significant takeaway from Monday’s disclosure is Strategy’s return to equity issuance as its primary funding mechanism, moving away from Bitcoin liquidations. This follows last week’s sale of 3,588 BTC for $216 million—the largest Bitcoin sale since the company abandoned its “never sell” pledge—which analysts like Grayscale’s Zach Pandl interpreted as a one-time reserve top-up rather than a sustained monetization strategy.
Monday’s filing confirms that view: Strategy executed more than double the amount in equity ($466.7 million) compared to its recent Bitcoin sale, all while keeping its BTC stack intact. This approach directly reduces the “forced seller” overhang that had been weighing on Bitcoin market sentiment during the recent correction.
$3 Billion Reserve Supports STRC Dividend Calendar
With its USD reserve now at a record $3 billion since disclosures began, Strategy is well-positioned to meet its financial obligations, including semi-monthly dividends on its STRC preferred shares and interest on outstanding debt. The new dividend schedule—announced June 8—uses the 15th and last day of each month as record dates, with the first payment triggered by the June 30 record date and paid on July 15.
At the current annual dividend rate of 11.50% on approximately 13.3 million STRC shares (par value $100), annual obligations total around $153 million. The $3 billion reserve thus provides roughly 19–20 months of coverage—significantly improving from the 14-month runway flagged by CryptoQuant in late June as a sign of capital stress.
Recent Transaction Timeline
The latest 8-K filing clarifies the sequence of recent moves:
- June 29–30: Sold 1,363 BTC at an average price of $59,256.
- July 1–5: Sold 2,225 BTC at an average of $60,773, totaling 3,588 BTC for $216 million.
- June 29: Raised $1.15 billion via ATM sale of 12.7 million MSTR shares.
- July 6–12: Raised additional $466.7 million from 4.8 million shares.
In total, over the past two weeks, Strategy raised ~$1.6 billion in equity versus $216 million from Bitcoin—a 7-to-1 ratio favoring equity. This supports Grayscale’s assessment of “prudent balance sheet management” rather than panic-driven capitulation.
$23.8 Billion ATM Overhang: Risk and Reassurance
Strategy retains $23.8 billion in remaining capacity under its MSTR ATM program—including $21 billion from a new offering announced March 23. The company may begin utilizing this additional capacity once the current offering is substantially depleted.
At Monday’s MSTR share price of $91.80 (down ~3% pre-market), the $23.8 billion represents potential issuance of ~259 million new shares. While this poses dilution risk for common shareholders, it also provides a massive equity runway that further diminishes the likelihood of future Bitcoin sales to meet obligations.
Analysts at Grayscale and Bitrue have noted that as long as MSTR trades above levels where ATM issuance remains economically viable, Strategy can sustain its capital structure without touching its Bitcoin holdings—a scenario they describe as “paving the way for a more durable Bitcoin bottom.”