Strategy Raises $225M Cash by Selling Stock, Keeps All Its Bitcoin

Strategy added $225M to its cash reserve by selling shares instead of Bitcoin, sparking debate over who pays the price.

Strategy, the world's largest Bitcoin treasury company (a business that holds huge amounts of Bitcoin on its balance sheet), just boosted its cash pile by $225 million — without selling a single Bitcoin.

Instead of dipping into its crypto, the company raised the money by selling new shares of its own stock, called MSTR. Here are the key numbers:

Sold 2,732,318 MSTR shares between July 13–19
Netted $263.5 million in cash
Total USD Reserve now stands at $3.225 billion
Still holds its full 843,775 Bitcoin (about 4% of all Bitcoin that will ever exist)

How did they do it? Strategy used an "at-the-market offering program" — a method that lets a company slowly sell brand-new shares directly into the stock market, little by little, without a big banking deal. The cash goes into its USD Reserve (a dedicated dollar fund used to pay debts and dividends).

Who gets paid first? The reserve mainly protects preferred shareholders — investors who bought special securities that pay them regular income (dividends). These people get paid before common shareholders (regular MSTR stock owners who profit only if the share price rises).

Here's the catch: issuing new shares "dilutes" existing owners. Dilution means every share now represents a smaller slice of the company, which can lower its value for ordinary shareholders.

Critics aren't happy. Peter Schiff, a well-known Bitcoin skeptic, argued Strategy is "needlessly sacrificing common shareholders to protect preferred shareholders." He suggested the company may be avoiding a large Bitcoin sale because it fears crashing the price — its stash is simply too big to sell without shaking the market.

Why does this matter? Strategy's weekly updates act as a signal for the whole crypto market. When it buys Bitcoin, prices often move up; when it sells or pauses, analysts pay close attention.

For now, its Bitcoin (bought at an average of $75,476 per coin) sits at a roughly $9.6 billion paper loss — an "on-paper" loss that only becomes real if the coins are actually sold.

This is an AI-generated summary. Read the original article at: https://decrypt.co/373834/strategy-raises-225m-for-cash-reserve-mstr-sale-bitcoin