Strategy Adds Bitcoin and Cash After Selling Common Stock
Strategy bought 520 bitcoin for about $34.9 million last week and added $300 million to its cash reserves. The moves, funded by common stock sales, come as investors watch the company’s preferred shares and bitcoin-heavy balance sheet.
What happened?
Strategy bought 520 bitcoin for about $34.9 million last week and added $300 million to its cash reserves. The moves, funded by common stock sales, come as investors watch the company’s preferred shares and bitcoin-heavy balance sheet.
Why it matters
Strategy, the Michael Saylor-led company formerly known for its bitcoin treasury strategy, sold about 2.7 million shares of common stock last week and used the proceeds to add both bitcoin and cash to its balance sheet, according to CoinDesk. The company raised $335.5 million, bought 520 BTC for roughly $34.9 million, and placed another $300 million into cash reserves.
Strategy, the Michael Saylor-led company formerly known for its bitcoin treasury strategy, sold about 2.7 million shares of common stock last week and used the proceeds to add both bitcoin and cash to its balance sheet, according to CoinDesk. The company raised $335.5 million, bought 520 BTC for roughly $34.9 million, and placed another $300 million into cash reserves.
The cash increase matters because it is intended to support dividend payments on Strategy’s preferred stock, STRC. CoinDesk reported that investor concern around STRC had intensified in recent weeks, with panic selling on Thursday pushing the preferred shares to a record low below $83 before a rebound.
After the latest purchase, Strategy’s bitcoin holdings rose to 847,363 BTC. The company has acquired those coins at a total cost of about $64.01 billion, equal to an average purchase price of $75,651 per bitcoin.
The latest bitcoin buy was relatively small compared with Strategy’s overall holdings, but it shows the company is still adding to its BTC position while also building liquidity. That balance is notable because Strategy’s market story now spans both its large bitcoin treasury and the health of its preferred-share structure.
CoinDesk reported that STRC was up another 2% Monday morning to $90.43, still below its $100 par value. Strategy’s common stock, MSTR, was higher by 3.5% as bitcoin rebounded to just under $65,000.