MicroStrategy stock surged 12% on Thursday, trading at $138.38 by midday as the company announced its cash reserves now offset nearly all its $6.75 billion debt. The company put its net leverage at roughly 0.1%, meaning its cash nearly cancels its debt while its 840,447 BTC stack stands almost free and clear. The stock is now down less than 9% in 2026, with the advance building on last week's crypto stocks rally that had already lifted MSTR to a two-month high. The company's chart shows MicroStrategy holds $6.69 billion in dollars against $6.75 billion of debt, with the gap just $60 million.
MicroStrategy raised approximately $2.0065 billion last week through MSTR stock sales, with no Bitcoin purchases made during the August 17-23 period. According to the latest SEC filing, the company sold 18.26 million MSTR shares through its at-the-market offering program, with most proceeds kept in cash after $136.4 million was used to repurchase 1.43 million STRC preferred shares. The USD Reserve grew from $4.8 billion to $5.1 billion, while a brand new USD Cash pool holds another $1.59 billion, bringing the total cash position to $6.69 billion as of August 23. As per the filing, the USD Reserve provides 'additional flexibility when deciding how to deploy capital under different market conditions', with funds available for Bitcoin purchases, preferred stock dividends, debt payments, and securities repurchases.
Strategy's latest Bitcoin acquisition occurred on June 22, when the company bought 520 coins at $67,068 each. Since that day, the company has sold 6,916 coins and bought none, with two of those sales falling in August when it moved 3,328 BTC near $64,000 per coin. The company's total Bitcoin holdings now stand at approximately 840,447 BTC at an aggregate cost of $63.36 billion, maintaining an average cost of $75,385 per Bitcoin. Bitcoin currently trades near $80,709.72 after a 5% climb in 24 hours, with the company's holdings carrying an unrealized gross gain of roughly $4.47 billion at current prices. The company sold 1,638 BTC in July at roughly $64,000 per coin, which had fed doubts about the treasury's ability to survive a long crypto winter. The Bitcoin stack is worth about $67.9 billion, with Bitcoin trading above $80,000 at press time.
Strategy has significantly increased its STRC preferred stock repurchases, spending $136.4 million on 1.43 million shares during the week ended August 23, following $132.2 million on 1.39 million shares the previous week and $108.6 million on 1.15 million shares during the week ended August 9. The STRC preferred stock pays 12% now, up from 9% at launch, and trades under its $100 face value. CEO Phong Le has indicated that future Bitcoin accumulation will be tied to conditions in STRC, stating that 'when Stretch gets back to par, we'll issue more. We'll buy more Bitcoin'. The company's shelf programs still hold $44.9 billion of unused capacity across five securities, making raising more cash relatively easy.
Strategy's cash reserves have grown dramatically from $1.44 billion in December 2025 to the current $6.69 billion total. The centerpiece is a $5.10 billion reserve earmarked for dividend and interest payments, which held $4.0 billion at the start of August and swelled because the firm raised $3.28 billion this month while buying no Bitcoin at all. The company created the USD Reserve to fund preferred stock dividends and interest payments on outstanding debt, reducing dependence on capital raises or Bitcoin sales for scheduled obligations. The board authorized a BTC Monetization Program allowing up to $1.25 billion of Bitcoin sales to help fund the reserve, alongside separate $1 billion repurchase authorizations for common stock and preferred securities. Between July 13 and July 19, the company sold 2.73 million MSTR shares for $263.5 million while keeping Bitcoin holdings unchanged and increasing the reserve to $3.225 billion.
The stock's 12% surge on Thursday erased much of the year's damage, with MSTR now trading at $138.38 and gaining approximately 25.5% over the previous week despite the latest share issuance. The advance builds on last week's crypto stocks rally that had already lifted MSTR to a two-month high. With Bitcoin back above its cost basis, the question for September is whether Strategy will finally spend some of its $6.69 billion in dollar reserves on coins. The company's treasury sits barely 4% in profit given its average cost of $75,419 per coin, so the margin remains thin. Analysts suggest Bitcoin's current downturn follows a four-year cycle of bull-market tops and bear-market bottoms that correspond with halving events, with the last bear market ending in November 2022. The stock remains well below last year's levels after a bruising one-year performance duel with Bitcoin itself.
