Strategy Dilutes MSTR Stock Holdings In Fresh 520 Bitcoin Purchase

Key Insights:

• Strategy sold 2.71 million MSTR shares, generating $335 million cash, and adding it to its USD reserves.
• Strategy now holds 847,363 BTC acquired for about $64.1 billion.
• Strategy increased its U.S. dollar reserve from $1.1 billion to $1.4 billion, and now has 10 months of dividend coverage.
• Analysts remain bullish for the MSTR stock which is trading at its 2026-low.

Michael Saylor’s Strategy announced yet another 520 Bitcoin purchase worth $35 million. The latest purchase comes at an average BTC price of $67,068, as per the SEC filing. Interestingly, despite the company diluting its MSTR stock holdings for the latest purchase, the share price is up 4.24% in the pre-market trading hours on Monday, June 22.

Michael Saylor’s Strategy Sells $335 Million in MSTR Stock

In its latest filing with the U.S. Securities and Exchange Commission (SEC), Michael Saylor’s Strategy stated that it sold a total of 2.71 million MSTR shares last week, between June 15 and 21. As a result, the company generated a total net proceeds of $335 million via its ATM program.

The company has used very small of the proceeds to purchase 520 Bitcoins. As of June 21, Strategy held 847,363 Bitcoin acquired at a total cost of approximately $64.1 billion. The average BTC purchase price currently stands at $75,651.

In addition to this, the company reported that its USD reserve has increased to $1.4 billion. Thus, it has further strengthened its liquidity position along with its Bitcoin treasury holdings. Speaking on the development, company chairman Michael Saylor wrote:

Strategy has increased its USD Reserve by $300 million to $1.4 billion and plans to continue replenishing it to support the credit quality of its Digital Credit securities.

Strategy Expands Its MSTR Stock Dividend Coverage

The falling Bitcoin price has led to major concerns among investors on Strategy is going to stick to its dividend promises. By getting more USD reserves, the company is strengthening its balance sheet.

Chaintanya Jain, the head of Bitcoin product and investor strategy at MSTR, said: “We now have 32 years of dividend coverage through our BTC Reserve and 10 months through our USD Reserve.” Thus, the company seems to be in a very comfortable position to service its dividend commitments.

Another strategist, Adam Livingston, pushed back that the recent MSTR stock issuance has diluted investors. He argued that common shareholders are now economically exposed to a larger portion of the company’s balance sheet than before.

He mentioned that Strategy’s latest capital raise increased both its Bitcoin holdings and cash reserves. This has reduced the overall claims relative to the overall asset base.

Before today’s transaction, Strategy held 846,842 BTC, with net senior claims of approximately $21.13 billion and common equity exposure to 531,804 BTC. Following the transaction, the company’s Bitcoin holdings increased to 847,363 BTC, while cash reserves rose from $1.1 billion to $1.4 billion.

As a result, net senior claims declined to approximately $20.83 billion. This has increased common equity exposure to 536,798 BTC, according to his calculations.

MSTR Stock Bounces 4%

Following the announcement of a fresh Bitcoin purchase, the MSTR stock surged 4% in the pre-market trading hours on Monday, June 22. Currently, the share price is trading at the 2026 lows, and investors believe that the bottom could be in.

So far, among other crypto firms, MSTR stock has been the worst-performing. As per the Artemis data, several Bitcoin proxy firms lagged majorly. Among them, MSTR and CRCL were the biggest underperformers.

Despite this, analysts at TD Cowen has given a target of $440 per share for the MSTR stock. The analysts highlighted the firm’s robust financial architecture, including substantial cash reserves and preferred MSTR offerings.

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