# MicroStrategy stock jumps 6.8% as Bitcoin buying pause continues

**Published:** 2026-08-06T16:17:00.518Z  
**Topic:** Microstrategy Bitcoin  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/4676d700-7ef6-4a70-a7a7-ea4b080cc957

MicroStrategy shares rose 6.8% to $97.88 after a fifth week without new Bitcoin purchases, while its Bitcoin yield fell to 4.5% and cash reserves hit $3.75 bn.

MicroStrategy (MSTR) shares surged 6.8% to $97.88 on Monday, the highest gain in three days, after the company disclosed it bought no Bitcoin for the fifth straight week and added $525 million to its cash reserve, a move that investors see as reducing balance‑sheet risk despite a falling Bitcoin yield [2].

| At a glance | |
|---|---|
| Stock price | $97.88 |
| 24h move | +6.8% |
| Bitcoin yield | 4.5% (down from 13.3% on May 25) |
| Catalyst | No new BTC purchases; $525 M cash reserve boost |

## No new Bitcoin purchases, cash reserve climbs  
MicroStrategy reported that its Bitcoin holdings stayed at 843,775 BTC, unchanged from the week ended July 26, and that the average purchase price of its treasury remains $75,476 per coin [2]. The company generated $544.5 million by selling about 5.4 million common shares, using the proceeds to expand its U.S. dollar reserve to $3.75 billion—enough to cover more than two years of its annual dividend and interest obligations of roughly $1.759 billion [2]. The cash buildup offsets concerns that the company might need to issue additional preferred shares (STRC) to meet its $1.76 billion yearly payout, a risk highlighted in its own Q1 filing [1].

## Bitcoin yield drops sharply, raising questions on value creation  
Peter Schiff pointed out that MicroStrategy’s “Bitcoin Yield”—the amount of Bitcoin backing each common share—has slumped to 4.5% this year, a 66% decline from the 13.3% level recorded on May 25 [1]. The drop stems from the recent share issuance without accompanying Bitcoin purchases, a pattern confirmed by the 5‑week buying pause [2]. At the current Bitcoin price of about $64,762, the company’s average cost per coin exceeds market price by roughly $10,700, implying an on‑book loss of $8.9 billion [1]. Nonetheless, the stock’s rally suggests investors are valuing the strengthened liquidity more than the immediate yield erosion.

## Preferred‑share buyback offers modest relief  
MicroStrategy repurchased 288,930 STRC preferred shares at an average price of $86.52, spending $25 million and trimming less than 0.2% of its $1.76 billion annual dividend liability [1]. The buyback saves an estimated $3.5 million in dividend payments each year, a small offset against the larger cash outflow required to service its preferred‑stock obligations.

## What to watch  
- Bitcoin price relative to the $75,476 average cost per coin; a sustained decline could deepen the yield gap.  
- Upcoming Q2 earnings on July 30, which will reveal the official Bitcoin yield after the latest cash‑reserve build‑up.  
- Any new issuance of common or preferred shares that could further dilute the Bitcoin backing per share.

The market’s reaction underscores a shift: investors are rewarding MicroStrategy’s liquidity discipline even as its Bitcoin yield erodes, leaving the longer‑term payoff tied to future Bitcoin price movements and the company’s ability to balance capital allocation between cash reserves, share repurchases, and eventual BTC purchases.

## Sources
1. BeInCrypto — [Peter Schiff Says Saylor Just Wiped 66% Off MicroStrategy’s Bitcoin Yield](https://beincrypto.com/peter-schiff-bitcoin-over-mstr/)
2. Invezz — [Strategy stock jumps as Bitcoin buying pause enters fifth straight week](https://invezz.com/news/2026/07/27/strategy-stock-jumps-as-bitcoin-buying-pause-enters-fifth-straight-week/)

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Cite as: TrendWatcher, "MicroStrategy stock jumps 6.8% as Bitcoin buying pause continues", https://www.trendwatcher.in/article/4676d700-7ef6-4a70-a7a7-ea4b080cc957