Strategy raised $467 million through a common stock sale last week and directed all proceeds toward cash reserves instead of purchasing Bitcoin, marking the third consecutive week without a Bitcoin acquisition. The company's cash reserve reached a record $3 billion, providing over 20 months of coverage for its $1.76 billion in annual dividend and interest obligations. Strategy's Bitcoin holdings of 843,775 coins remain approximately $11 billion underwater, with Bitcoin trading at $62,600 against the company's average purchase price of $75,476.
Strategy Allocates $467M Stock Sale to Cash Reserves
Strategy issued common stock to raise $467 million last week, adding approximately 18% to the company's cash reserves in a single transaction. The entire amount went toward cash rather than Bitcoin purchases. Since its last Bitcoin purchase on June 22, Strategy has generated about $215 million from selling Bitcoin, less than half of what this single stock issuance brought in.
MSTR shares fell 4% on Monday to around $90.80, down 18% on the month. The stock has stabilized since hitting a 28-month low of $81.81 in late June. STRC trades at $87.04, below its $100 par value where it has remained since mid-May while paying a 12% dividend. The company is issuing common shares to fund dividend payments on its preferred stock, diluting MSTR holders to pay STRC holders.
Senate Democrats Demand Ethics Provisions in CLARITY Act
Elizabeth Warren wrote to Senate leadership on Monday demanding the CLARITY Act bar the president, vice president, senior officials, members of Congress, and their families from profiting off the crypto industry. On Tuesday, Senate Democrats including Chris Murphy and Chris Van Hollen are expected to hold a press conference against the bill, addressing Trump's crypto dealings and arguing the bill weakens financial oversight built after the Great Depression.
The CLARITY Act requires 60 votes to pass, meaning at least seven Democrats must cross over. Mitch McConnell remains hospitalized, and Lindsey Graham died suddenly over the weekend. Trump argued Monday that the Senate should pass CLARITY in Graham's honor, calling him a big supporter of crypto legislation. Graham was never involved in the negotiations, rarely spoke on the topic, and was the only Senate Republican to co-sponsor a 2023 anti-money-laundering bill that crypto groups called deeply hostile to the industry.
Less than four weeks remain before the August recess. Galaxy cut the bill's odds to 50%, and prediction markets price it in the low 40s.
Bitcoin ETFs Record $425M in Net Outflows
Bitcoin ETFs saw $425 million in net outflows on Monday, turning July negative. Ethereum ETFs recorded $15 million in outflows. Bitcoin traded at $62,700 with mixed performance across major cryptocurrencies. Ethereum rose 1% to $1,795, while Solana fell 1% to $75.
Bitcoin and Ethereum social media posts have fallen to their lowest level since 2020. June CEX volumes fell 5% from May, while derivatives trading rose by 4%.
FAQ
Why did Strategy raise $467 million without buying Bitcoin?
Strategy issued common stock to raise $467 million last week and allocated all proceeds to cash reserves, lifting its total cash to a record $3 billion. The company now has over 20 months of coverage for its $1.76 billion in annual dividend and interest obligations.
What is the current status of the CLARITY Act in the Senate?
The CLARITY Act requires 60 votes to pass, meaning at least seven Democrats must support it. Elizabeth Warren wrote to Senate leadership on Monday demanding the bill bar government officials and their families from profiting off crypto. Less than four weeks remain before the August recess, with Galaxy cutting the bill's odds to 50%.
