Strategy Bolsters Bitcoin (BTC) Cash Reserve to $5.1B

Strategy's USD Reserve Reaches $5.1B

Bitcoin treasury company Strategy has expanded its U.S. dollar cash reserve to $5.1 billion following a common stock sale that raised approximately $2 billion, according to the company's securities filing. The firm did not add to its Bitcoin holdings for the second consecutive week, with its total stash remaining at 840,447 BTC. Between August 17 and 23, Strategy sold 18.26 million shares of its MSTR common stock, generating net proceeds of $2.006 billion. Of that, $300 million was added to the existing dollar reserve, while $136.4 million funded the repurchase of 1.43 million preferred STRC shares. The remaining ~$1.570 billion was placed into a newly established 'USD Cash' facility, which is intended for flexible capital needs such as future Bitcoin acquisitions, debt interest payments, or share buybacks. The company stated that the enlarged reserve is designed to support preferred dividend payments and interest on outstanding debt, and its size helps mitigate forced-sale risk even in sharp price declines. The weekly disclosure marks the second straight week with no Bitcoin purchases, a deliberate pause after heavy accumulation earlier in 2026.

Preferred Buyback Continues with $136.4M

Strategy repurchased 1.43 million STRC preferred shares for $136.4 million during the same period, a move consistent with its policy of buying back the preferred stock whenever it trades below $100 per share. The company views such buybacks as an attractive capital-allocation tool, as they reduce the preferred dividend burden at a discounted price. With Bitcoin trading around $78,100 as of Aug. 24, well above Strategy's average acquisition cost of $75,385 per BTC, the unrealized gain on its Bitcoin hoard has grown to approximately $2.28 billion. That paper profit, disclosed in the filing, has helped sustain investor confidence even as the firm intentionally suspended new purchases for two weeks. Over the past five weeks, Strategy has sold roughly $2.1 billion worth of common stock and repurchased about $347 million in STRC preferred shares, highlighting an ongoing shift toward a more flexible capital structure. The company has signaled it may continue buying back STRC opportunistically based on market conditions, liquidity, and capital allocation priorities.

Overbought RSI Meets Strong Resistance

Bitcoin currently trades near $79,111. COINOTAG's proprietary 42-indicator composite scoring engine rates the $79,529.5 resistance level at 95/100, supported by the confluence of Fibonacci 0.000, Donchian Upper, Swing High, and R2 pivot. Immediate support at $77,467.7 scores 79/100, driven by Flip R→S, Pivot Point, and Fibonacci 0.114. With RSI at 82.18, Bitcoin is in overbought territory, while funding rates of 0.0069% and open interest of $15.65 billion indicate sustained long positioning. The bullish scenario requires a decisive breakout above $79,530, which would open the path toward the $85,400 level. A daily close below $77,468 would invalidate that thesis and could trigger a retreat toward $75,529. Given the Fear & Greed Index at 73, profit-taking may intensify near resistance. In a broader bear market, the $71,924 and $62,521 support levels would come into focus.