Woofun AI reports that Strategy, the largest corporate holder of Bitcoin, executed a capital raise via Class A common stock sales without altering its Bitcoin treasury, as detailed in a Form 8-K filed with the SEC. This filing confirms the firm’s continued reliance on equity issuance to fund its operations while maintaining a static position in digital assets.

Between July 13 and July 19, the company generated $263.5 million through its at-the-market (ATM) program. During this window, no Bitcoin transactions occurred, leaving the total holdings at 843,775 BTC. These assets were acquired for a cumulative cost of $63.69 billion, resulting in an average acquisition price of $75,476 per coin, according to Strategy’s website. At the time of reporting, Bitcoin was trading at approximately $64,657.

Following the sale of 2.73 million MSTR shares, Strategy’s US dollar reserves expanded by 7.5% to $3.225 billion, up from $3 billion the previous week. This reserve pool, which includes unsettled proceeds, is designated for preferred stock dividends and debt interest payments. The update follows a prior week where $466.7 million was raised via the MSTR ATM program with no Bitcoin purchases. No shares were sold under preferred stock ATM programs during either period, though $23.5 billion in remaining capacity under the common stock ATM program provides significant future flexibility.

Market pricing reflected mixed sentiment, with STRC preferred stock closing at $85.29 on Friday and MSTR shares ending at $94.85. Credit investor Khing Oei argued on X that STRC is undervalued, criticizing the market’s treatment of the asset as a simple "14% yield" product. Oei contended that the stock should be valued like a bond, estimating a fair value of $96 even if Bitcoin stagnates, based on Strategy’s ability to sustain dividend payments for decades.

Oei identified leverage as the primary driver for potential appreciation, suggesting that a rising Bitcoin price would strengthen Strategy’s balance sheet and push STRC toward its $100 par value. This valuation logic hinges on the firm’s capacity to support dividend payments through enhanced asset backing. The debate underscores the complex interplay between equity financing, debt obligations, and the speculative nature of Bitcoin holdings.