Strategy Inc., the company formerly known as MicroStrategy, just topped $1 billion in cash reserves while simultaneously buying more Bitcoin.

Between June 1 and June 7, the firm acquired 1,550 BTC for $101.3 million, translating to an average price of roughly $65,332 per coin. That brings its total stash to a staggering 845,256 BTC, purchased at a cumulative cost basis of $63.97 billion, or about $75,680 per Bitcoin on average.

The numbers behind the rebound

In May, Strategy dipped into its cash reserves to repurchase $1.5 billion in convertible notes, a move that drained its USD holdings down to $871 million. The company then raised $181 million through common stock sales under its at-the-market equity program, pushing cash reserves back up by $100 million to the $1 billion mark as of June 7.

Strategy sold 32 BTC earlier in the period, its first Bitcoin sale since 2022. The sale was small, barely a rounding error against 845,000 coins, but it broke a years-long streak of pure accumulation. The company appears to have used proceeds to provide liquidity for preferred stock dividends, before resuming its buying.

Strategy’s evolving playbook

The company trades under multiple ticker symbols, including MSTR and STRC, and uses its at-the-market equity program as a funding mechanism. The convertible note repurchase in May added another layer, reducing debt obligations while temporarily crimping liquidity.

Strategy also maintains what it calls a “Bitcoin yield” metric, essentially a way to measure how much Bitcoin per share it’s accumulating over time.

The $1 billion cash reserve target provides a buffer against market volatility and Bitcoin price drawdowns, while also ensuring the company can meet its obligations on preferred stock dividends without being forced into fire sales. The 32 BTC sale in early June suggests that even Strategy recognizes the need for some dollar-denominated liquidity.

At current prices, Strategy’s 845,256 BTC makes it by far the largest corporate holder of Bitcoin on the planet. The total cost basis of $63.97 billion represents one of the largest concentrated bets in financial history.

What this means for investors

The gap between Strategy’s average purchase price of $75,680 and the recent acquisition price of roughly $65,332 is worth noting. The company is currently buying Bitcoin below its own average cost basis, which means recent purchases are actually improving its overall position.

The May convertible note repurchase showed that Strategy is willing to deploy significant capital on debt management. Having $1 billion in reserve means the company won’t be cornered into selling Bitcoin to meet obligations.

The risk is concentration. Strategy has built its entire corporate identity around a single asset. The $1 billion cash buffer is less than 2% of the $63.97 billion already deployed into Bitcoin, a ratio that leaves very little room for error if conditions turn hostile.