Strategy Sells 1,690 Bitcoin and Raises $653 Million as It Strengthens Its Cash Position
Strategy (MSTR) raised $653.1 million from the sale of 6.59 million shares of common stock last week while separately selling 1,690 bitcoin for $108.6 million, according to a Monday regulatory filing.
The company used the proceeds from the bitcoin sale to repurchase 1,152,020 shares of its variable-rate preferred stock, STRC, for $108.6 million.
Strategy Sells 1,690 Bitcoin
The 1,690 bitcoin were sold at an average price of $64,262, net of fees and expenses, reducing Strategy’s holdings to 840,447 BTC.
The company acquired those holdings for a total of $63.36 billion at an average purchase price of $75,385 per bitcoin.
Despite the sale, Strategy remains the largest corporate holder of bitcoin among publicly traded companies, with its remaining position worth roughly $54.6 billion at a bitcoin price near $65,000.
$650 Million Goes Into the Dollar Reserve
At the same time, Strategy raised $653.1 million through the sale of 6.59 million MSTR shares.
The company directed $650 million of those proceeds into its U.S. dollar reserve, increasing the balance to $4.65 billion as of Aug. 9. The remaining $3.1 million was added to its cash balance.
Led by Executive Chairman Michael Saylor, Strategy has increasingly used a combination of common stock, preferred securities and its bitcoin holdings to manage and expand its balance sheet.
Why the STRC Repurchase Matters
Rather than using the $108.6 million generated from its bitcoin sale for general operations, Strategy deployed the proceeds to repurchase 1,152,020 shares of STRC, its variable-rate preferred stock.
The transaction highlights the increasingly active role Strategy’s bitcoin holdings play within its broader capital structure.
Bitcoin remains the dominant treasury asset, while the company’s growing dollar reserve provides another source of liquidity for preferred-stock obligations and other corporate commitments.
Strategy Still Has Significant Buying Power
The latest transactions leave Strategy with considerable capacity to make further moves.
The company has $785.2 million remaining under its preferred-stock repurchase program and another $1 billion available under its MSTR common-stock repurchase program.
Combined with its $4.65 billion dollar reserve and 840,447 BTC position, that gives Strategy several sources of capital as it continues managing its bitcoin-focused balance sheet.
A More Flexible Bitcoin Treasury
Strategy’s latest moves show how its bitcoin strategy is developing beyond simply accumulating more BTC.
The company is now actively managing bitcoin, cash, common stock and preferred securities as interconnected parts of its capital structure.
The sale of 1,690 BTC represents only a fraction of Strategy’s overall bitcoin position, while the addition of $650 million to its dollar reserve gives the company substantially more liquidity.
MSTR and STRC were both up around 0.5% in Monday pre-market trading, while bitcoin was changing hands near $65,000.