Bitcoin

This article is for informational purposes only and does not constitute investment advice. Always do your own research (DYOR) before making any financial decisions.

Strategy bought 520 Bitcoin for $34.9 million between June 15 and June 21, according to an 8-K filing with the SEC. The average price paid was $67,068 per coin. The purchase brings the company's total holdings to 847,363 BTC.

The company also added $300 million to its US dollar reserve, lifting that fund to $1.4 billion. Both moves were funded by $335.5 million raised through sales of Strategy's Class A common stock, ticker MSTR, under its at-the-market program.

Strategy's total Bitcoin spending now stands at $64.1 billion. That puts its average cost per coin at $75,651, above the current Bitcoin price of roughly $65,000.

Why The Cash Reserve Matters Right Now

The reserve exists to cover dividend payments and debt tied to Strategy's preferred stock lineup. One of those securities, STRC, is built to trade near $100. Last week it fell to a record low of $89.

When STRC trades below its $100 par value, Strategy halts new share issuance through that program. This cuts off one of its funding channels for buying Bitcoin and paying obligations. The dollar reserve is meant to bridge that gap.

Strategy said in its filing that it plans to keep adding to the reserve "based on market conditions" to protect the credit quality of its debt securities. The $300 million addition follows an earlier buildup to $1.1 billion just one week before.

How Strategy Got Here

Strategy has been buying Bitcoin since 2020, when it was still called MicroStrategy. For most of that period, Michael Saylor said the company would never sell its coins.

That pledge broke in late May. Strategy sold 32 Bitcoin for about $2.5 million to fund STRC dividend payments. It was the first sale since the buying program began.

The sale rattled investors who had built confidence around Saylor's no-sell stance. MSTR shares have struggled since, falling alongside Bitcoin's broader pullback from its cycle highs. The stock closed near $112 on Thursday, before the Friday market holiday.

Bitcoin itself has dropped more than 40% from levels near where STRC launched in mid-2025. The coin now trades around $65,000, down from highs above $126,000 reached earlier in its cycle.

The STRC Mechanism Investors Are Watching

Bitcoin advocate Samson Mow described STRC as having a self-correcting design. When the price falls below $100, Strategy stops issuing new shares, which caps supply growth.

Mow argued that a lower STRC price raises the effective yield for new buyers. Higher yield can attract demand and push the price back up over time. He framed this as a market-driven fix rather than something Strategy actively manages.

This is a real feature of the security's structure. It is also untested at scale during a period of sustained Bitcoin weakness, since STRC only launched in July 2025.

What This Means For Strategy's Model

Strategy holds close to 4% of all Bitcoin that will ever exist. Its buying activity and financing choices are watched closely because the company is the largest corporate holder and one of the most active buyers in the market.

Other Bitcoin treasury companies have copied parts of Strategy's funding approach, mixing equity sales, debt, and preferred stock to finance coin purchases. Strategy's current stress test affects how those companies are judged by investors too.

The case for the cash reserve is straightforward. It buys Strategy time to meet obligations without selling Bitcoin again, preserving the holding strategy that defines the company.

The risk is just as clear. Strategy's average purchase price sits well above the current market price, meaning its newest coins are underwater. Continued reliance on share sales also dilutes existing MSTR holders, and a stock price that keeps falling limits how much capital the ATM program can raise. As of June 21, the company still had about $25.4 billion in unused ATM capacity, giving it room to keep funding both the reserve and future purchases if MSTR shares stabilize.