Strategy Reports 10% Bitcoin Growth as Phong Le Defends New Treasury Strategy

What to Know

• Strategy reported a 10% Bitcoin holdings increase, reaching 843,775 BTC while boosting cash reserves and improving Bitcoin yield significantly.
• Michael Saylor explained Strategy’s three-part capital structure, describing Bitcoin as Digital Capital while STRC supports credit and MSTR represents equity.
• Investor reaction remained mixed as MSTR shares gained 9.4% but STRC and STRD traded below par despite stronger operational results.

 

Strategy CEO Phong Le revealed the company increased its Bitcoin holdings by 10% over the past three months, lifting its treasury to a record 843,775 BTC. According to Le, the company also expanded its cash reserves and more than doubled its year-to-date Bitcoin yield, reinforcing the firm’s long-term Bitcoin strategy despite recent debate over its capital management decisions.

According to a post shared by Le on X, Strategy raised its Bitcoin holdings between April 6 and July 6. The company also increased its U.S. dollar reserves by 13% to $2.55 billion during the same period. Moreover, its year-to-date Bitcoin yield improved from 3.7% to 7.8%, reflecting stronger performance from its treasury strategy.

Le’s update addressed growing investor discussion surrounding Strategy’s decision to sell part of its Bitcoin holdings for operational needs. However, the latest figures showed the company still added substantially to its Bitcoin reserves while strengthening its financial position.

Besides reporting higher Bitcoin holdings, Le highlighted improvements in the company’s liquidity. The larger cash reserve gives Strategy additional flexibility while supporting its broader corporate objectives. Additionally, the higher Bitcoin yield demonstrates stronger returns from the firm’s digital asset strategy this year.

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Michael Saylor Explains Strategy’s Updated Capital Structure

Strategy founder Michael Saylor also outlined how the company now organizes its balance sheet. According to Saylor, Strategy has evolved beyond operating as a simple Bitcoin accumulation vehicle. Instead, it manages three separate financial components designed to serve different groups of investors.

Under the revised framework, Bitcoin represents the company’s Digital Capital. Meanwhile, STRC serves as Digital Credit by supporting financing activities linked to Strategy’s operations. In addition, MSTR shares remain the company’s equity capital within the overall structure.

According to Saylor, each financial instrument fulfills a distinct role while supporting the same long-term Bitcoin strategy. He added that targeted Bitcoin sales should be viewed as balance sheet management rather than a shift away from the company’s commitment to accumulating Bitcoin.

Consequently, Strategy believes the updated structure provides greater flexibility while preserving its long-term investment approach. The company maintains that the framework allows it to balance operational funding with strong Bitcoin ownership.

Investors Deliver Mixed Response

Market performance, however, reflected differing views on the company’s revised strategy. During the first eight days of July, MSTR shares gained about 9.4%, indicating continued confidence from equity investors. At the same time, Strategy’s debt-related instruments remained under pressure. STRC traded at $86.56, while STRD changed hands at $61.68, both below their $100 par value. Those prices suggested bond investors remained more cautious despite the company’s latest operational update.

Le’s announcement nevertheless reinforced Strategy’s position as the largest corporate holder of Bitcoin. The latest treasury figures also demonstrated that the company expanded its Bitcoin holdings even while implementing a more flexible capital management framework.

Strategy used its latest operating update to reaffirm its long-term Bitcoin strategy through higher holdings, stronger liquidity, and improved Bitcoin yield. According to Phong Le and Michael Saylor, the company’s evolving capital structure is designed to support financial flexibility while maintaining Bitcoin as its primary treasury asset.

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