Bitcoin treasury firm Strategy has padded its cash reserves for a third consecutive week, lifting its USD reserve to $1.4 billion after its preferred stock STRC tumbled to record lows. The Virginia-based company added $300 million in cash through a common stock offering that raised $335 million, while also acquiring 520 BTC for $35 million — its smallest Bitcoin purchase since a rare sale three weeks ago.
Cash Reserve Rebuild Amid STRC Volatility
Strategy's latest move comes as its Stretch (STRC) preferred shares, which offer an 11.5% annual dividend, fell as low as $82.53 — roughly 17% below their $100 par value — testing investor confidence in Michael Saylor's "digital credit" vision. The product has helped Strategy accumulate Bitcoin but now saddles the firm with an additional $100 million in monthly costs, making cash reserves a key signal of business sustainability. At $1.4 billion, the funds provide more room to manage dividends and debt. Saylor tweeted that the company "plans to continue replenishing them to support the credit quality of its Digital Credit securities."
Bitcoin Holdings and Market Impact
With Bitcoin trading near $65,000, Strategy's total holdings of 847,363 BTC are worth roughly $55 billion, representing an unrealized loss of about $9 billion. The company's year-to-date growth rate of Bitcoin-per-share slowed from 12.8% to 11.8% over three weeks, drawing criticism from economist Peter Schiff, who said the firm "destroyed value by effectively selling $1.20 worth of Bitcoin to buy $1 worth of Bitcoin." Despite the headwinds, Strategy's common shares rose 3.8% to $116.60 on Monday, narrowing a 27% monthly decline.
Strive Outpaces Strategy in Bitcoin Buys
Meanwhile, asset manager Strive announced it added 750 BTC to its stockpile, bringing its total to 19,864 BTC worth around $1.3 billion. Strive offers a similar preferred product, SATA, which features a 13% annual dividend. SATA rose 0.6% to $98.26 after falling sharply on Friday. Strive CEO Matt Cole attributed the dip to forced selling, calling Friday "the most significant stress test Digital Credit has faced so far," but noted that buyers emerged and both securities recovered substantially from their lows.