Strategy (MSTR) Stock Slides 3% — But Analysts Say No Bitcoin Buy Is Actually Bullish

TLDR

• Strategy sold 4.8 million MSTR shares for $466.7 million between July 6–12 via its ATM offering
• Bitcoin holdings remain unchanged at 843,775 BTC, bought at an average of $75,476 per coin
• USD reserve grew ~18% to $3 billion, covering dividend obligations for over 20 months
• Analysts at Benchmark and TD Cowen both maintained Buy ratings, with price targets of $570 and $260 respectively
• MSTR shares were trading down ~3% to around $91.50–$91.80 ahead of Monday’s open

Strategy sold $466.7 million in MSTR stock last week without buying a single Bitcoin — and Wall Street is calling it a good thing.

Strategy Inc, MSTR

MSTR shares were trading down roughly 3% to around $91.50–$91.80 ahead of Monday’s Nasdaq open, according to Yahoo Finance and The Block. Bitcoin was also under pressure, down more than 2% in 24 hours to around $62,580.

The share sale, conducted through Strategy’s at-the-market (ATM) offering between July 6 and July 12, involved 4.8 million Class A common stock shares. The company disclosed the transaction in a Monday 8-K filing with the SEC.

Despite the capital raise, Strategy did not purchase or sell any Bitcoin during the period. Its BTC holdings remain at 843,775 coins, acquired at an average price of $75,476 each.

The move pushed Strategy’s USD reserve up roughly 18% in a single week, from $2.55 billion to $3 billion as of July 12.

Analysts Back the Strategy

Analysts at Benchmark and TD Cowen both published notes on Monday backing the move.

---

---

TD Cowen reiterated its Buy rating and $260 price target, with analyst Lance Vitanza writing that the 8-K filing is “an early indication that management is beginning to execute against the framework” laid out in a recent investor roadshow. The bank pointed to the larger cash reserve and the absence of Bitcoin purchases as signs of “greater balance-sheet discipline.”

Benchmark also kept its Buy rating, with analyst Mark Palmer setting a much higher price target of $570. Palmer described the share sale as building a “dividend war chest,” noting the reserve now covers the company’s annual dividend obligations for over 20 months.

Neither firm sees skipping Bitcoin purchases as a red flag. Both said investors should focus on Strategy’s goal of growing Bitcoin-per-share while keeping its preferred stock financing model on solid ground.

The Bigger Capital Picture

Strategy still has $23.8 billion in remaining capacity under its MSTR ATM offering. That includes $21 billion from a new facility announced on March 23. The company said it may tap that additional capacity once the existing offering is nearly used up.

This comes just days after Strategy separately sold 3,588 BTC — worth around $216 million — to replenish its reserve and fund preferred stock dividend payments. Those sales happened between June 29 and July 5, at average prices of $59,256 and $60,773 per BTC.

Strategy is also preparing for its first semi-monthly STRC preferred stock dividend payment on July 15, under a new twice-monthly schedule announced on June 8.

In the same June 29 filing, Strategy had reported selling 12.7 million MSTR shares for $1.15 billion in net proceeds, while making no Bitcoin purchases during that window.