Strategy said its bitcoin holdings were unchanged at 843,775 BTC as of July 12, while its USD Reserve increased by $450 million from the previous week to $3 billion, according to a post by Executive Chairman Michael Saylor on July 12 Eastern Time.
4.8 million MSTR shares sold through ATM program
A company release said Strategy sold 4.8 million MSTR shares through an at-the-market, or ATM, program from July 6 to July 12, raising $466.7 million in net cash. The full amount was transferred into the USD Reserve, and the company did not buy any additional BTC during the period.
Details cited by The Block and CoinDesk break the week’s funding activity into three parts: the sale of 4.8 million MSTR shares, the addition of the full $466.7 million to the USD Reserve, and no change in the company’s 843,775 BTC holdings.
An ATM program allows a company to sell shares gradually into the public market based on available liquidity, without concentrating issuance at one time and without announcing a specific sale price in advance.
Reserve intended for dividends and debt service
Past Strategy disclosures said the USD Reserve is mainly used to pay the 12% annualized monthly dividend on STRC perpetual preferred stock, as well as interest and principal on other debt instruments.
The report said that, at the current pace of spending, the $3 billion reserve would be enough to cover several years of dividend and interest payments, reducing the need to sell BTC for cash during unfavorable market conditions.
Funding tool shifted from BTC sales to MSTR sales over two weeks
Over the past two weeks, Strategy’s funding approach has shifted. A previous report by Chain News said the company sold 3,588 BTC on July 6 for $216 million in cash to pay STRC dividends. Saylor described that move at the time as a use of funds under the “Digital Credit” framework.
This week’s move used a different tool. Instead of selling BTC, Strategy sold MSTR through the ATM program, raising a larger amount — $467 million versus $216 million — while leaving its bitcoin position untouched.
Aligned with the June 29 Digital Credit framework
The report said this funding path is consistent with the “Digital Credit” framework Strategy disclosed on June 29. Under that framework, the company treats its BTC reserve as collateral for digital credit and can monetize part of its bitcoin holdings when needed to cover dividends and debt obligations.
Based on the company’s actions over the past two weeks, Strategy is now using two cash channels: selling BTC and selling MSTR.
