Key Takeaways
- Strategy acquired 520 bitcoin for approximately $34.9 million at an average cost of $67,068 per token
- The firm raised $335.5 million through the sale of roughly 2.7 million MSTR shares
- Cash reserves increased by $300 million, pushing the total to $1.4 billion
- The reserve enhancement aims to secure dividend obligations for STRC preferred stock, which dropped to an all-time low beneath $83 on Thursday
- Benchmark reaffirmed its Buy recommendation with a $570 target price on MSTR; shares advanced 3.5% on Monday
Strategy (MSTR) shares advanced 3.5% on Monday following the company’s announcement of a 520 bitcoin acquisition and a $300 million boost to its cash reserves. MSTR traded near $112.53 on Monday, though still reflecting approximately 14% decline over the preceding week.
The firm liquidated approximately 2.7 million MSTR shares via its at-the-market distribution program, generating $335.5 million in proceeds. Of this total, roughly $34.9 million funded the bitcoin acquisition, while the balance strengthened cash holdings.
The 520 BTC acquisition occurred at a mean price of $67,068 per coin. Strategy’s cumulative bitcoin position now reaches 847,363 BTC, accumulated at an aggregate expense of roughly $64.01 billion, representing an average entry point of $75,651 per bitcoin.
The strategic choice to retain $300 million in liquid assets directly addressed shareholder apprehension regarding STRC, the company’s Variable Rate Series A Perpetual Stretch Preferred Stock. These worries intensified last Thursday as STRC plummeted to an unprecedented low under $83.
STRC carries a par value of $100, a threshold Michael Saylor had previously identified as an approximate floor for pricing. The decline sparked social media comparisons to the Terra/Luna implosion, with certain observers suggesting the preferred stock had experienced a “depeg.”
Pressure Mounts on STRC Preferred Shares
STRC concluded the abbreviated holiday week at approximately $89. By Monday’s opening, it had rebounded to $90.43, representing a roughly 2% gain — though remaining notably below par value.
Strategy’s shareholders additionally authorized modifications to the STRC dividend distribution schedule at the 2026 Annual Meeting of Stockholders. Disbursements will transition to a semi-monthly cadence from the previous monthly schedule.
The $1.4 billion aggregate cash position is designed to reassure investors regarding the sustainability of preferred stock dividend commitments. The maneuver seems to have alleviated certain immediate concerns.
Benchmark Maintains Bullish Stance
Benchmark analyst Mark Palmer confirmed his Buy recommendation and $570 valuation target for MSTR following these disclosures. Palmer had similarly upheld his rating earlier in the week during STRC’s descent.
Cantor Fitzgerald had previously reaffirmed an Overweight assessment on Strategy after a prior bitcoin transaction, wherein the company acquired 1,587 BTC at an average cost of $63,024 utilizing $100 million from equity sales.
Bitcoin traded marginally below $65,000 on Monday, recovering from the previous week’s retreat. This rebound contributed to MSTR’s gains alongside the cash reserve announcement.
Strategy’s aggregate bitcoin holdings of 847,363 BTC constitute one of the most substantial individual corporate positions in the digital asset globally.
The cash reserve enhancement and STRC’s modest recovery indicate that acute pressure on the preferred instrument has diminished, at least temporarily.
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