Strategy is selling stock to pay dividends on stock

The company raised $544.5 million in one week by issuing common shares, bought no bitcoin with it, and put it in a reserve whose stated purpose is covering preferred dividends. The obligation runs $1.76 billion a year. The flywheel that made Strategy famous now turns in the opposite direction, and the coverage is calling it bullish. Summary An SEC filing covering the week ended July 26 shows Strategy sold nearly 5.43 million Class A common shares through its at-the-market programme for $544.5 million in net proceeds. No bitcoin was purchased with those proceeds. Holdings stayed flat at 843,775 BTC at an average cost near $75,476, a total cost basis around $63.69 billion. The money went into a dedicated USD Reserve, now at $3.75 billion, whose board-approved purpose is paying preferred stock dividends and interest expenses as they come due. Those obligations run approximately $1.76 billion annually across five preferred series, and the STRC rate rose from 11.5% to 12.00% effective July 1. Strategy reports second-quarter results after the close today, having already disclosed an $8.32 billion quarterly loss on digital assets and a bitcoin position carried roughly $14 billion below co...