Key facts
- Strategy raised $467 million by issuing common stock.
- The company's cash reserves reached a record $3 billion.
- Strategy has not purchased Bitcoin for three consecutive weeks.
- Bitcoin ETFs experienced $425 million in net outflows on Monday.
- Senate Democrats are opposing the CLARITY Act, citing concerns over politicians profiting from crypto.
- Jupiter announced a new gacha platform powered by Collector Crypt.
Strategy has raised $467 million by issuing common stock, bolstering its cash reserves to a record $3 billion. This marks the third consecutive week the company has forgone a Bitcoin purchase, despite its substantial cash position and Bitcoin trading at a significant discount to its all-time high. The capital raise, which added approximately 18% to Strategy's cash reserves, provides over 20 months of coverage for its annual dividend and interest obligations.
This move by Strategy, led by Michael Saylor, involves issuing common shares to fund dividend payments on preferred stock, a strategy that dilutes MicroStrategy (MSTR) holders. MicroStrategy's stock fell 4% on Monday to around $90.80, and is down 18% for the month, having recently hit a 28-month low of $81.81. The company's substantial Bitcoin holdings, acquired at an average cost of $75,476, are currently estimated to be underwater by roughly $11 billion.
Meanwhile, the broader crypto market shows mixed signals ahead of CPI data. Bitcoin is trading around $62,700, while Ethereum is up 1% to $1,795. Bitcoin ETFs experienced $425 million in net outflows on Monday, turning July negative, and Ethereum ETFs saw $15 million in outflows. Social media mentions for both Bitcoin and Ethereum have fallen to their lowest levels since 2020.
In regulatory news, Senate Democrats are reportedly increasing opposition to the CLARITY Act. Senator Elizabeth Warren has urged Senate leadership to include provisions barring politicians and their families from profiting from the crypto industry. Further opposition is expected from other Senate Democrats, who argue the bill could weaken financial oversight. The bill requires 60 votes for passage, and the deadline before the August recess is approaching.
Other developments include Jupiter announcing a new gacha platform powered by Collector Crypt, Pump.fun reporting significant protocol fees and token burns, and Robinhood Chain surging in DEX volume. Binance US also indicated a restart of growth following a regulatory hiatus. NFTs saw mixed performance, with notable movers on the new Robinhood NFT sets.