Strategy (MSTR) sells $748M in stock, boosts $2.19B USD reserve and pauses Bitcoin buys
Strategy (MSTR) sold 4.535 million Class A shares via its at‑the‑market (ATM) program on Dec. 15–21, raising $747.8 million in net proceeds and increasing its USD reserve to $2.19 billion. The reserve, created in early December to cover preferred dividends and interest, was initially $1.44 billion; management said it aims to hold at least 12 months of dividends and eventually 24 months, with the size and terms remaining discretionary. As part of a rebalancing amid the crypto downturn, Strategy has paused Bitcoin purchases. The company holds 671,268 BTC on its balance sheet with an aggregate purchase cost of $50.33 billion and an average buy price of $74,972 per BTC; its most recent purchase was 10,645 BTC on Dec. 15 for $980.3 million (avg. $92,098). Strategy still has $11.8 billion of common stock capacity under its ATM program and multiple preferred‑stock issuance tranches available. Strategy’s common shares are down roughly 50% over the past 12 months. For traders: the pause in buys removes a steady, company‑sourced buyer from the market for now, while the larger USD reserve and available ATM capacity mean Strategy can resume purchases or issue stock again depending on market and liquidity needs—factors likely to influence BTC liquidity and sentiment in both short and longer terms.
Neutral
The news is neutral for BTC price direction overall. Bearish signals: Strategy has paused direct BTC purchases, temporarily removing a predictable, large corporate buyer that had supported demand. The company also realized stock issuance dilution by selling 4.535M shares, which reflects capital-raising pressure amid a falling share price. Bullish/neutral offsets: Strategy raised $747.8M in USD reserves and retains substantial ATM capacity and preferred‑stock issuance tranches, meaning it can quickly redeploy capital to buy BTC again if conditions improve—supporting medium‑term demand. The firm still holds a large long‑dated BTC position (671,268 BTC), underscoring continued institutional accumulation intent. Short-term impact: likely muted selling pressure on BTC but reduced buyer demand could weigh on liquidity and increase volatility. Medium-to-long term: potential for renewed buying if Strategy elects to deploy reserves or issue stock to fund further BTC purchases, making the effect contingent on management decisions and market recovery. Traders should watch Strategy’s ATM activity, preferred dividends schedule, and any announcements about resuming purchases as signals for renewed corporate demand.