MicroStrategy Halts Bitcoin Buys, Raises $335.5M Stock to Boost $1.4B Cash Reserve
MSTR•MicroStrategy suspended Bitcoin purchases after selling shares to raise $335.5 million and boost its cash reserve to $1.4 billion. Its annualized dividend obligations have quadrupled to $1.2 billion for 2026 as its USD buffer fell 38%, while it sits on a $10.6 billion unrealized Bitcoin loss.
1. Strategic Shift to Cash
In the week of June 22, MicroStrategy purchased only 520 Bitcoin for approximately $35 million, marking a clear pause in its long-standing acquisition strategy. The company concurrently raised $335.5 million through a sale of common stock and allocated about $300 million to its U.S. dollar reserve, lifting total cash to $1.4 billion. This reallocation prioritizes liquidity over digital asset accumulation given growing financial obligations.
2. Mounting Obligations and Unrealized Loss
MicroStrategy’s annualized dividend obligations have increased nearly fourfold to $1.2 billion for 2026 as its U.S. dollar buffer has declined by 38%. Its preferred stock traded at a record low near $82.50, widening the discount to par and reducing dividend coverage from over seven years to roughly 14 months. At current Bitcoin prices, the firm reports an unrealized loss of about $10.6 billion, underscoring the balance-sheet pressures driving the shift.
