MicroStrategy Boosts Cash Reserve by $300M, Pauses Bitcoin Buys
MSTR•MicroStrategy paused Bitcoin purchases two weeks before CryptoQuant’s June 23 warning, redirecting fresh capital into its US dollar reserve that has fallen 38% to $1.4 billion. The firm raised $335.5 million in stock sales, added $300 million to cash and limited June 22 buys to 520 BTC.
1. CryptoQuant’s Recommendation and Timing
On June 23, CryptoQuant recommended MicroStrategy halt Bitcoin purchases and rebuild its cash reserve, citing rising dividend obligations. By that date, the company had already shifted strategy, reducing its Bitcoin acquisitions for over two weeks.
2. Reserve Decline and Dividend Obligations
MicroStrategy’s US dollar reserve fell 38% this year to roughly $1.4 billion as annualized dividend commitments surged to $1.2 billion. The drawdown heightened concerns over liquidity and dividend coverage.
3. Stock Sales and Reserve Rebuild
In the week ending June 22, MicroStrategy sold $335.5 million of common stock and allocated $300 million to its cash reserve, shoring up its balance sheet. This influx aimed to address near-term funding needs and stabilize liquidity.
4. Recent Bitcoin Purchase Activity
During the same period, the company purchased just 520 BTC for about $35 million, a sharp reduction from prior weeks. The pivot prioritized cash accumulation over expanding its Bitcoin treasury.
