Strategy Buys 1,550 Bitcoin for $101 Million, Lifts Cash Reserves to $1 Billion After Stock Selloff

Strategy purchased 1,550 Bitcoin for $101 million, according to a Monday SEC filing, returning to large-scale accumulation after the firm posted its steepest weekly stock decline since November 2022. The Tysons Corner, Virginia-based company disclosed holdings of 845,256 Bitcoin. With $BTC changing hands around $63,000, a 1.4% increase over the past day, the firm's stockpile was worth roughly $53.3 billion, according to CoinGecko. Strategy's shares rose 3.4% to above $124 following Monday's opening bell, according to Yahoo Finance, recovering ground after a 24% slide last week that followed the company's disclosure of selling 32 Bitcoin for $2.5 million — its first such sale in more than three years and a break from co-founder and Executive Chairman Michael Saylor's "Never sell your Bitcoin" stance.

The latest purchase was the company's largest in three weeks, but the filing placed greater emphasis on liquidity, indicating that cash reserves now stand at $1 billion. The company had pocketed roughly $80 million earmarked for managing dividend payments and debt obligations. Last month, Strategy had cut those reserves by 61% to repurchase debt at a discount, leaving fewer resources to cover dividend obligations on its flagship preferred stock. The company had previously set aside $2.25 billion in cash for Stretch (STRC), the variable-rate preferred instrument that pays an 11.5% annual dividend through monthly distributions. On Monday, STRC was valued at $94.72, moving toward its $100 par value, a threshold above which Strategy has historically issued additional STRC shares to fund further Bitcoin purchases.

The selling pressure on $BTC has been acute in recent weeks, with the asset down roughly 10% in June from $74,000 to $65,400. Last week, Bitcoin plunged to $59,400, its lowest point since October 2024. Strategy's stockpile was roughly $10.7 billion underwater as of Monday. During the company's first-quarter earnings call last month, Saylor said the firm would "probably" sell some Bitcoin to "inoculate the market," a move intended to reinforce the company's commitment to STRC's dividend. When asked about the size of the sale, Saylor replied "32?"