Strategy Keeps Bitcoin Holdings Steady While Expanding Cash Reserves

Strategy raised $333.7 million last week by selling 3.46 million shares of its common stock, according to a filing released Monday.

The Bitcoin treasury company, led by Executive Chairman Michael Saylor, did not purchase or sell any Bitcoin during the week ended Aug. 16. Its holdings therefore remained unchanged at 840,447 BTC. The company acquired those coins for a total of $63.36 billion, giving it an average purchase price of $75,385 per Bitcoin, including fees and expenses.

Strategy directed $132.2 million from the stock sale toward buying back 1,388,720 shares of its variable-rate preferred stock, STRC. It used another $52.4 million to cover STRC dividend payments and placed roughly $150 million into its U.S. dollar reserve.

The company’s cash reserve stood at approximately $4.80 billion as of Aug. 16, increasing its dollar liquidity duration to 2.8 years. Strategy says the reserve is designed to help cover preferred-stock dividends and interest obligations on its outstanding debt.

After the latest transactions, Strategy has about $653 million left under its preferred-stock buyback authorization and another $1 billion available for repurchasing MSTR common shares.

MSTR shares were up 1.3% in premarket trading, while Bitcoin gained more than 1% over the previous 24 hours to trade near $63,500.