MicroStrategy Boosts Reserve to $1.4B, Pauses Bitcoin Buys Despite $10.6B Loss
MSTR•MicroStrategy halted Bitcoin purchases two weeks before CryptoQuant’s June 23 warning and instead sold $335.5 million in common stock to boost its cash reserve to $1.4 billion. The firm’s annualized dividend obligations jumped nearly fourfold to $1.2 billion as its US dollar buffer tumbled 38% and it sits on a $10.6 billion unrealized loss.
1. CryptoQuant Warning and Timing
In late June, CryptoQuant recommended that MicroStrategy pause Bitcoin acquisitions and rebuild its cash reserve, but the company had already halted purchases two weeks earlier, indicating an independent shift in its capital allocation strategy.
2. Reserve Building Efforts
During the week of June 22, MicroStrategy sold $335.5 million in common stock, directing $300 million into its cash reserve and lifting the total buffer to $1.4 billion amid concerns over liquidity and dividend coverage.
3. Dividend Obligations and Cash Buffer
MicroStrategy’s annualized dividend obligations have surged to $1.2 billion in 2026, nearly quadrupling year over year, while its US dollar reserve has declined by 38% from roughly $2 billion before May.
4. Bitcoin Unrealized Loss
The company holds a $10.6 billion unrealized loss on its Bitcoin treasury as current prices remain well below its average acquisition cost near $75,000 per coin, complicating any sell-off strategy to replenish cash.
