MicroStrategy boosts cash reserve to $1.1 bn, Bitcoin holdings hit

MicroStrategy announced on Monday that its cash cushion has risen to $1.1 billion, while its Bitcoin stash grew to 846,842 BTC, valued at about $56.3 billion [2]. The firm bought 1,587 BTC for roughly $100 million in the latest purchase, a move that followed a modest sale of 32 BTC for $2.5 million a few weeks earlier.

The cash boost comes after the reserve fell to $871 million last month when the company repurchased part of its convertible debt at a discount. Analysts at JPMorgan had warned that rebuilding the dollar reserve might be needed to allay investor concerns over potential Bitcoin liquidations [2]. By topping up cash for a second straight week, MicroStrategy aims to fund dividend payments on its preferred stock (STRC) and service debt, while still signaling confidence in its long‑term Bitcoin strategy.

Shares of the firm jumped 7.2% to $132.66 after the announcement, briefly reaching $136 before settling lower over the past month [2]. The stock rally coincided with Bitcoin’s own 4% rise to above $66,500, but the company’s Bitcoin position remains roughly $7.8 billion underwater relative to its average purchase price [2].

Executive Chairman Michael Saylor also introduced a new risk metric, dubbed CEPE BPS, to track Bitcoin owned per share after senior claims. This refinement follows his earlier comments that “accretion” can be measured in different ways, including Bitcoin‑per‑share or net asset value including cash reserves [2]. The latest purchase actually reduced Bitcoin‑per‑share under the traditional metric for a second consecutive week, with the year‑to‑date change slipping to 12.5% from 13% [2].

The combined cash and Bitcoin moves suggest MicroStrategy is balancing short‑term liquidity needs with its long‑term “north star” of increasing Bitcoin per share. How the new CEPE BPS metric will influence future buying or selling decisions, and whether the firm can sustain dividend payouts while its Bitcoin holdings stay underwater, remain key questions for investors.