MicroStrategy Increases Cash Reserves to $2.19 Billion – No New Bitcoin Purchases

Stock Sales Instead of Bitcoin Accumulation

MicroStrategy has increased its U.S. dollar liquidity to $2.19 billion without acquiring new Bitcoin over the past week ^[2]. The increase in cash reserves was achieved through sales under the company's at-the-market (ATM) equity program ^[2].

Between December 15 and 21, the company sold approximately 4.54 million shares of its Class A common stock (MSTR), generating net proceeds of $747.8 million after deducting sales commissions ^[2]. The weekly update from MicroStrategy founder Michael Saylor on Sunday confirmed that the company's Bitcoin holdings remained unchanged at 671,268 BTC ^[1][2].

Strategic Hedging Through Increased Liquidity

Behind the increase in cash reserves is a clear objective: MicroStrategy aims to secure ongoing payment of dividends on preferred shares and interest on outstanding obligations ^[1]. The increased liquidity provides the company with greater balance sheet flexibility and capacity to weather market fluctuations, meet obligations, or deploy capital opportunistically without immediately relying on external financing ^[2].

Existing Bitcoin Position and Valuation

The total holdings of 671,268 Bitcoin have a current aggregate value of $60.5 billion ^[1]. The total acquisition costs for the Bitcoin position amount to approximately $50.33 billion ^[2]. The average purchase price across all Bitcoin holdings is $74,972 per coin, including fees and expenses ^[2]. The company's BTC yield currently stands at 24.9 percent ^[1].

Significant Capacity for Future Capital Raises

As of December 21, Strategy had more than $41 billion in remaining aggregate capacity under its ATM programs for common and preferred stock ^[2]. This indicates substantial room for future capital raises if needed. No preferred shares were issued during the reporting period, although several classes of preferred stock remain authorized and available for issuance ^[2].

No Change to Fundamental Bitcoin Strategy

The combination of higher cash reserves and stable Bitcoin holdings suggests a continued focus on financial resilience and readiness for future strategic opportunities, rather than a change in the company's broader Bitcoin strategy ^[2]. Strategy has previously stated that capital raises are intended to support long-term Bitcoin accumulation while maintaining sufficient liquidity to navigate market cycles ^[2].

Meanwhile, MicroStrategy, Strive, Metaplanet, and other treasury companies are pushing back against a planned MSCI reclassification ^[1].