Strategy Buys 4,603 Bitcoin for $370 Million in First Purchase Since Mid-June
Key Takeaways
- •Strategy acquired 4,603 Bitcoin at an average price of $80,318, increasing its total holdings to 845,050 BTC.
- •The company said the latest purchase was funded with net proceeds from a 602 million MSTR common stock sale.
- •Strategy used $30 million of the proceeds to raise its USD cash reserve and $151.8 million to repurchase its STRC preferred stock.
- •This was Strategy’s first corporate Bitcoin purchase since mid-June, when it bought 1,587 BTC for about $100 million.
- •STRC traded below its $100 par value on Monday pre-market, which may limit Strategy’s ability to raise money through future STRC sales.
Michael Saylor’s Strategy acquired 4,603 Bitcoin for $370 million, marking the largest corporate Bitcoin holder’s first purchase in two months.
Strategy bought 4,603 Bitcoin (BTC) at an average price of $80,318, bringing its total holdings to 845,050 BTC. The company said the stash was acquired for a combined $63.3 billion at an average price of $75,413, according to a Monday 8-K filing with the Securities and Exchange Commission.
The latest purchase was funded with net proceeds from a 602 million MSTR common stock sale. Strategy said it used $30 million of the proceeds to increase its USD cash reserve and $151.8 million to repurchase its preferred STRC stock, underscoring how the company is balancing Bitcoin accumulation with its financing and liquidity tools.
Nasdaq-listed MSTR rose less than 1% in Monday pre-market trading after falling more than 7% on Friday.
The acquisition is Strategy’s first corporate Bitcoin buy since mid-June, when it purchased 1,587 BTC for roughly $100 million.
On Sunday, Strategy co-founder and executive chairman Michael Saylor appeared to hint at a renewed buying cycle, posting “We’re Back” in a widely viewed X post. Saylor has often used cryptic weekend messages before the company announces larger treasury moves.
Strategy’s perpetual preferred stock, STRC, rose 0.44% in pre-market trading on Monday to $97.33, according to Yahoo Finance data, which puts the shares at a 2.67% discount to their intended $100 par value. STRC is one of Strategy’s main tools for financing Bitcoin purchases. Trading below par limits the company’s ability to raise funds through STRC sales and may also require Strategy to increase its nominal dividend rate to attract buyers and support the stock price.
In its June 29 8-K filing, Strategy introduced a capital framework that allows Bitcoin sales to fund dividends and raised the annual dividend rate on its STRC preferred stock to 12%. The company also disclosed the sale of 32 Bitcoin in early June, its first reported Bitcoin sale since a 2022 tax-loss transaction.
