Strategy increases its cash reserves by $525 million, buys no Bitcoin

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Strategy Inc. (MSTR) raised its cash reserve by $525 million over the past week.

The company filed Form 8-K on Monday, reporting it sold 5.4 million MSTR shares last week for $544.5 million. In that period, it also repurchased 288,930 shares of its STRC preferred stock for $25 million.

Michael Saylor, the company’s executive chairman, confirmed the news, writing on X that Strategy has now achieved 2.1 years of coverage for dividend and interest payments.

As of the filing, Strategy has a total of $3.75 billion in its USD Reserve.

Saylor announced the update a day early, as Cryptopolitan reported. On Sunday, he posted the same tracker chart with the comment “We’re gonna need another color”, a behavior that had in the past consistently been followed by a disclosure on Monday regarding a coin purchase.

We’re gonna need another color. pic.twitter.com/AqZO5UeXDx

But this time, the follow-up was a reserve building; Strategy failed to buy any Bitcoins during the week, which meant it was the fifth week in a row.

The company holds a total of 843,775 BTC, worth $54 billion, sitting on paper losses of more than $8 billion.

Critic Peter Schiff argues Strategy should have sold BTC

Long-time Bitcoin and Strategy Peter Schiff said that selling MSTR was a wrong move, arguing that Strategy should have sold BTC instead of the “discounted MSTR shares.”

“So, another week when you chose to destroy common shareholder value by selling discounted MSTR shares (thereby reducing Bitcoin per share) to raise cash and buy back STRC rather than sell Bitcoin,” Schiff posted.

He argued that the common stock sell-offs leave investors with no legitimate reason to own MSTR.

Strategy will report its Q2 earnings results on Thursday, July 30th. The company’s earnings are expected to increase by 6.40%, reaching $121.88 million.

MSTR currently trades at $97.46, up 6.44% in the day, following the news.

MSTR price chart. Source: Yahoo Finance.

The consensus price target for MSTR is around the $360 price mark, which implies an upside potential of over 290%.

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