Strategy Raises $334M From Stock Sales but Buys No Bitcoin
Key Takeaways
- •Strategy sold 3.46 million MSTR shares between Aug. 10 and Aug. 16 and raised $333.7 million.
- •The company did not buy or sell any Bitcoin, leaving its holdings at 840,447 BTC.
- •Strategy used $52.4 million of the proceeds to pay STRC dividends and $132.2 million to repurchase about 1.39 million STRC shares.
- •An additional $149.1 million was added to Strategy's US dollar reserve, which totaled $4.80 billion as of Sunday.
- •Strategy made no repurchases of other preferred securities or of MSTR common stock during the week.
Strategy raised $333.7 million through common stock sales last week but made no Bitcoin purchases, leaving its holdings of the cryptocurrency unchanged at 840,447 BTC — the largest corporate Bitcoin treasury, equivalent to roughly 4% of Bitcoin's capped 21 million coin supply.
The company sold 3.46 million MSTR shares between Aug. 10 and Aug. 16 through its at-the-market offering program, according to a Monday 8-K filing with the US Securities and Exchange Commission. The program lets Strategy sell shares into the market incrementally, and proceeds from such sales have historically been directed primarily toward additional Bitcoin purchases under Executive Chairman Michael Saylor.
How the proceeds were used
Of the total raised, $52.4 million funded the twice-monthly dividends on STRC preferred stock, while $132.2 million financed repurchases of the same security. A further $149.1 million was added to Strategy's US dollar reserve.
STRC — formally Strategy's 8.00% Series A Cumulative Perpetual Strike Preferred Stock — is one of several preferred securities the company has issued to broaden its sources of capital beyond common equity. Over the course of the week, the company repurchased approximately 1.39 million STRC shares for $132.2 million. It made no repurchases of its other preferred securities or of MSTR common stock.
Bitcoin holdings unchanged
Strategy reported no Bitcoin purchases or sales during the period. Its 840,447 BTC were acquired for an aggregate $63.36 billion, including fees and expenses, at an average purchase price of $75,385 per coin. Any resumption of buying would be disclosed in subsequent 8-K filings.
STRC market activity
STRC was down 0.12% in premarket activity Monday at $94.67, after closing Friday 1.03% lower at $94.78, according to Yahoo Finance.
US dollar reserve
Strategy's US dollar reserve stood at $4.80 billion as of Sunday, a figure that includes expected proceeds from stock sales that had not yet settled. The reserve is intended to support preferred-stock dividends and interest payments on outstanding debt.
Related: Strategy's Saylor needs clarity in BTC pivot message to convince investors: StanChart
