Strategy boosts USD reserve to $3.75 billion. The company added $525 million to its cash holdings.
This follows the sale of about $544.5 million in MSTR stock. The SEC filing confirmed this on July 27.
Why Strategy boosts USD reserve
The company now has 2.1 years of dividend coverage. This represents a significant increase from previous levels. The cash reserve provides more financial flexibility.
Strategy also conducted its first STRC preferred stock buyback. The company purchased 288,930 shares worth $25 million. This marks the first buyback under the Digital Credit Securities Repurchase Program.
The program launched last month. $975 million remains available for future buybacks. Additionally, $1 million worth of MSTR stock is still available.
Bitcoin holdings remain unchanged
Strategy didn’t buy any Bitcoin again this week. The company continues diluting MSTR stock instead. Current holdings remain at 843,775 BTC.
These Bitcoins are worth $58.47 billion at current prices. However, the company sits on a $5.21 billion unrealized loss. The coins were purchased for $63.68 billion.
Market reaction
MSTR stock closed 2.09% lower at $91.67 on Friday. The intraday range was $89.76 to $93.68. Trading volume remained below average.
Nevertheless, MSTR jumped 2.21% in premarket trading. It currently trades at $93.70. This follows a pause in the US-Iran war.
The stock remains down 10% in a month. It is down almost 50% year-to-date. STRC stock rose 1.66% to $88.33 nevertheless. This remains below the $100 target price.
Analysts remain optimistic about the stock. TD Cowen, Citigroup, Bernstein, and Barclays maintain buy ratings. The average 12-month price target is $275.
Bitcoin holds above $65K
Bitcoin held above $65,000 over the last 24 hours but now it fell to $64,515. Positive progress in Iran-Oman talks supported the price. The 24-hour range was $64,354 to $65,658.
Trading volume increased by 86% over the past few hours. This signals bullish sentiment among traders.