Strategy Goes Cash With Latest Raise, No Bitcoin Buys For Now
Hold the Bitcoin. A major investment strategy just pulled a classic finance move—cashing out after its latest capital raise.
Why The Pause Button?
It's not a bearish signal on crypto's long-term thesis. Think tactical repositioning. The fund raised fresh capital, and its playbook says park it in cash—for now. No new Bitcoin allocations hit the books. It's a waiting game, watching for the right entry point while sitting on a war chest.
The Cash Cushion Play
This isn't panic. It's precision. Deploying large sums into a volatile asset like Bitcoin requires timing. The strategy suggests discipline over FOMO, opting for dry powder instead of immediate deployment. A cynic might note it's the oldest trick in the finance book: raise money when you can, not when you need it—then figure out what to do with it later.
What's Next for the Strategy?
All eyes are on the sidelines. The cash position creates optionality. A market dip becomes a buying opportunity, not a crisis. The move underscores a professional approach: capital preservation first, aggressive growth second. For Bitcoin, it means one major buyer is temporarily out of the market, waiting for its moment to strike.
Strategy Prioritizes Cash Reserve Over Bitcoin Buys
Strategy has released a new financial update showing a clear shift toward US dollar accumulation, stepping back from its previous pattern of aggressive bitcoin buys. Saylor shared the report on X this Monday, outlining the company’s most recent capital activity. The filing focuses on equity sales, Strategy’s bitcoin holdings and activity, and its cash reserves.
During the week of December 15 to December 21, Strategy raised significant funds through its ATM equity program. The business intelligence firm did not sell any of its preferred stock offerings within this period, leaving billions of dollars in remaining issuance capacity. Notably, the filing shows that the STRK preferred stock program still holds more than $20 billion in available capacity.
Instead of preferred shares, Strategy had tapped its common stock program. The company sold 4.5 million shares of Class A common stock, generating roughly $747.8 million in net proceeds after fees. Even after this raise, Strategy still has approximately $11.8 billion of common stock available for future issuance.
While the business intelligence firm has increased its cash position, it paused Bitcoin purchases for the week. The filing reported that no new Bitcoin purchases were made during the week of December 15 to December 21, keeping its total holdings unchanged at 671,268 BTC. Those holdings carry an aggregate purchase cost of about $50.33 billion, with an average price NEAR $74,972 per coin.
Update On Strategy’s US Dollar Reserve
Strategy’s latest addition to its cash reserve this past week builds a larger cushion to cover the company’s financial obligations. The firm started the month with a reserve of $1.14 billion and increased it to approximately $2.19 billion by December 21. This growth suggests a deliberate MOVE to secure liquidity amid ongoing market activity.
The boost in cash comes after rumors circulated that Strategy could face pressure to meet dividend obligations on its preferred shares. Additionally, there has been speculation that the business intelligence firm may sell its over $50 billion Bitcoin holdings if the market continues to trend downward for a prolonged period.
According to the filing, the primary purpose of the Strategy’s US dollar reserve is to cover dividend payments on preferred stock and interest payments on outstanding debt. Because the company holds a large amount of Bitcoin, selling a significant portion to fund these dividends could disrupt the market, especially during periods of volatility. This underscores the importance of maintaining a cash reserve for easy liquidity.
