USDStrategy Builds Cash as Bitmine Slows Ethereum Purchases
Corporate crypto treasuries redirect capital toward liquidity, dividends and share buybacks
TL;DR
- Strategy increased its dollar reserve while keeping its Bitcoin holdings unchanged for a second consecutive week.
- Bitmine sharply reduced Ethereum purchases and spent about $86 million repurchasing its own common shares.
- Both companies retained their core crypto treasury strategies while allocating more capital toward corporate obligations and shareholder support.
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Strategy and Bitmine shifted capital away from maximum-speed cryptocurrency accumulation, with Strategy building a larger cash reserve instead of buying Bitcoin and Bitmine slowing Ethereum purchases while repurchasing its own shares.
Strategy increased its U.S. dollar reserve to $3.225 billion after adding roughly $225 million in cash during the preceding week. The company left its Bitcoin holdings unchanged for a second consecutive week, directing newly raised capital toward liquidity and preferred-stock dividend obligations rather than additional Bitcoin purchases.
Strategy raised most of the capital through its at-the-market equity program. The company sold more than 2.7 million MSTR common shares for approximately $263.5 million, according to its regulatory filing. The increase in cash was smaller than the gross proceeds because part of the capital was used elsewhere within the company’s financing structure.
Strategy Executive Chairman Michael Saylor said the company held 843,775 BTC alongside its dollar reserve. Strategy neither purchased nor sold Bitcoin during the latest reporting week.
The decision followed an approximately $216 million Bitcoin sale earlier in July 2026. That transaction represented a rare reduction in Strategy’s holdings after years of near-continuous accumulation.
Strategy had previously authorized a Bitcoin monetization program allowing it to sell as much as $1.25 billion of BTC. The program was designed to increase available cash and help fund dividend payments on the company’s preferred stock.
Strategy prioritizes liquidity over additional Bitcoin
Strategy remains the largest corporate Bitcoin holder despite the pause in purchases. COIN360 data placed Bitcoin price at approximately $64,700 when the July 20 figures were recorded, valuing the company’s holdings at nearly $55 billion.
MSTR shares traded approximately 1.2% higher at $96 during pre-market trading. The company’s dollar reserve represented approximately 5.9% of the cited market value of its Bitcoin holdings.
Strategy built the reserve by issuing common stock rather than generating the full amount through operating cash flow or another Bitcoin sale. The transaction increased available liquidity while expanding the company’s outstanding equity base.
Preferred-stock dividends create recurring dollar obligations that cannot be paid through unrealized Bitcoin appreciation alone. Strategy must therefore fund those commitments through cash reserves, operating revenue, capital issuance, asset sales or other financing transactions.
The company’s Bitcoin holdings do not produce native protocol yield. That differs from Ethereum-based treasury strategies that can generate staking revenue by committing tokens to network validation.
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Bitmine redirects capital toward an $86 million buyback
Bitmine separately disclosed that it sharply reduced the pace of its Ethereum accumulation and spent approximately $86 million repurchasing its own common shares.
The company added only 7,430 ETH, worth approximately $14 million, during the latest week. The purchase was among Bitmine’s smallest weekly additions since it launched its Ethereum treasury strategy in June 2025.
Bitmine’s holdings increased to approximately 5.78 million ETH, which the company said represented nearly 4.8% of Ethereum’s circulating supply. Bitmine has set a target of controlling 5% of the supply, leaving it approximately 0.2 percentage points below that objective.
The latest purchase was substantially smaller than Bitmine’s earlier accumulation. The company acquired more than 111,000 ETH during a single week in May 2026. The subsequent decline to 7,430 ETH represented a reduction of more than 93% in weekly acquisition volume.
Bitmine Chairman Tom Lee directly linked the slowdown to the company’s stock repurchase. “The reduced pace of buys reflects that Bitmine repurchased 5.5 million common shares,” Lee said in a statement.
Bitmine bought the shares at an average price of $15.62 under its existing $4 billion repurchase authorization. Multiplying the reported number of shares by the average purchase price produces an estimated expenditure of approximately $85.9 million.
BMNR shares traded at $16.61, almost 6% higher on the day. That market price was approximately 6.3% above Bitmine’s average repurchase price.
The company spent more than six times as much capital repurchasing its stock as it spent on the latest Ethereum purchase. Bitmine nevertheless continued buying ETH, extending an uninterrupted weekly accumulation record that Lee said had remained in place since the treasury strategy began.
Ethereum staking supports Bitmine’s treasury model
Bitmine reported that its Ethereum position was worth approximately $11 billion, making it the largest corporate ETH holder and the second-largest digital-asset treasury behind Strategy based on the cited value of cryptocurrency holdings.
Strategy’s Bitcoin position was roughly five times larger than Bitmine’s Ethereum position at the stated valuations. Bitmine also held 207 BTC alongside its primary ETH treasury.
Bitmine disclosed $385 million in cash and securities. The company also reported a $180 million stake in Beast Industries and a $58 million position in Eightco Holdings, giving the two named equity investments a combined cited value of $238 million.
Adding those investments to the reported cash and securities produces at least $623 million in disclosed non-crypto financial assets. That calculation excludes the value of repurchased Bitmine shares and any other holdings that were not specified.
Bitmine had staked 4.92 million ETH through its MAVAN validator platform, representing approximately 85% of its total Ethereum holdings. The difference between the company’s total holdings and its staked balance left approximately 860,000 ETH unstaked.
The company projected approximately $247 million in annualized revenue from its staked Ethereum position. That projection equals about $20.6 million per month and represents a nominal revenue yield of roughly 2.2% relative to the stated value of the company’s ETH holdings.
Projected annualized revenue equated to approximately $50 for each staked ETH. Actual revenue would depend on the assumptions used in Bitmine’s projection.
Treasury strategies move in opposite equity directions
Strategy and Bitmine retained their core cryptocurrency positions but used opposite equity transactions to support their balance sheets.
Strategy sold common shares to raise capital, increasing its dollar liquidity while preserving its Bitcoin holdings. Bitmine used available capital to repurchase common shares while continuing to acquire a smaller amount of Ethereum.
Strategy’s financing structure includes preferred securities with recurring cash dividend commitments. Bitmine’s Ethereum holdings provide a separate revenue channel through staking, although most of its treasury is committed to validator operations rather than held entirely as unstaked ETH.
Neither company ended its cryptocurrency treasury strategy. Strategy maintained its entire Bitcoin position during the week, while Bitmine continued its record of weekly Ethereum purchases at a substantially reduced pace.
FAQ
Why did Strategy stop buying Bitcoin?
Strategy retained newly raised capital to increase cash reserves and support preferred-stock dividend obligations.
Did Strategy sell Bitcoin during the latest week?
No. Its Bitcoin holdings remained unchanged for a second consecutive week.
Why did Bitmine reduce Ethereum purchases?
Tom Lee said the slower buying reflected Bitmine’s repurchase of common shares.
Has Bitmine reached its Ethereum supply target?
No. Its reported holdings remained below its stated target.
This article has been refined and enhanced by ChatGPT.
