Strategy shares surge over 7% to $98.5 after USD reserve boost

Strategy, the company Michael Saylor turned from a sleepy software firm into the world’s largest corporate Bitcoin holder, saw its stock jump over 7.5% to close at $98.5 after announcing it had boosted its USD reserve to $3.75 billion.

How Strategy built its cash fortress

Strategy first established the reserve at $1.44 billion back in December 2025, funded through at-the-market common stock sales. The goal was straightforward: cover 12 to 21 months of preferred stock dividends and debt interest payments.

By July 13, 2026, Strategy had sold roughly 4.8 million MSTR shares, pulling in approximately $466.7 million and pushing the total reserve to around $3 billion. An additional raise of $263.5 million brought it to about $3.225 billion shortly after.

The latest boost to $3.75 billion represents a continuation of that same playbook. The annualized obligations the reserve is designed to cover sit at an estimated $1.76 billion, which means the company now has roughly two years of runway before it would need to think about where its next dollar comes from.

Strategy’s Bitcoin holdings stayed completely untouched throughout all of this. The company still holds 843,775 BTC, with no purchases or sales reported during the reserve-building period.

The dilution trade-off

Every share Strategy sells to pad its cash reserve dilutes existing shareholders. Issuing nearly 5 million shares in a single tranche isn’t nothing.

But the market’s reaction tells you how investors are weighing that trade-off. A 7.5% pop suggests shareholders would rather absorb some dilution than worry about Strategy being forced to sell Bitcoin during a downturn to make interest payments.

What this means for investors

For MSTR shareholders specifically, the $3.75 billion reserve essentially de-risks the dividend and debt story for the foreseeable future. With $1.76 billion in annualized obligations and more than double that in cash, there’s a wide margin of safety.

The risk that remains is straightforward: if Bitcoin enters a deep, sustained bear market, Strategy’s 843,775 BTC position would decline dramatically in value while its obligations stay fixed. The cash reserve buys time, not immunity. Two years of runway is generous, but it’s not infinite. Investors should watch the ratio between the reserve balance and annualized obligations as the most important metric for gauging how comfortable the company’s financial position really is.

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