Strategy stock sale raised $333.7 million last week. The company sold MSTR shares through its at-the-market offering program.
Strategy did not buy or sell any Bitcoin. Holdings remain unchanged at 840,447 BTC.
Why Strategy stock sale matters
Strategy sold 3.46 million MSTR shares between August 10 and August 16. The SEC filing confirmed this on August 17.
The company used $52.4 million for STRC dividends. Another $132.2 million went toward STRC repurchases. $149.1 million was added to the U.S. dollar reserve.
Strategy reported no Bitcoin purchases or sales during the period. This follows two consecutive weeks of BTC sales.
Strategy uses MSTR proceeds for STRC buybacks
Strategy repurchased about 1.39 million STRC shares. This cost $132.2 million under its Digital Credit Securities Repurchase Program.
No repurchases were made for STRF, STRK, or STRD preferred securities. The company also did not buy back any MSTR common stock.
Following these purchases, $653 million remains under the $1 billion preferred securities authorization. Another $1 billion remains available under the common stock repurchase program.
Both programs were established in late June. The board authorized up to $2 billion in security repurchases. This was split evenly between MSTR common stock and preferred securities.
The framework also allowed Bitcoin sales of up to $1.25 billion. This could fund the USD reserve, dividends, and repurchases.
STRC remains below par
STRC closed Friday at $94.78. This is down 1.03% during the session. It fell another 0.12% to $94.67 in Monday premarket trading.
Strategy has been using several measures to support the preferred security. CEO Phong Le personally bought $1 million of STRC in June. He said he would hold until the security returned to par.
STRC was trading below $90 when Le disclosed the purchase.
Bitcoin holdings remain at 840,447 BTC
Strategy decided not to buy Bitcoin last week. This came after two consecutive weeks of sales.
Between August 3 and August 9, the company sold 1,690 BTC. This generated $108.6 million at an average price of $64,262. Strategy used the entire amount to repurchase 1.15 million STRC shares.
The Bitcoin-funded buyback reduced holdings to 840,447 BTC. MSTR sales during the same week generated $653.1 million. $650 million went to the dollar reserve. $3.1 million was added to unrestricted cash.
Strategy had sold another 1,638 BTC between July 27 and August 2. This generated $104.7 million. Proceeds were split between dividends and preferred stock repurchases.
These sales followed the first Bitcoin disposal since December 2022. The company sold 32 BTC for about $2.5 million in late May.
Strategy later raised STRC’s annual dividend rate to 12%. This was part of the June capital framework. Management can adjust the dividend to keep STRC near par.
Despite recent disposals, Strategy remains the largest corporate Bitcoin holder. Current holdings cost $63.36 billion. Average purchase price is $75,385 per coin.
USD reserve reaches $4.80 billion
Bitcoin holdings stayed unchanged last week. Nevertheless, Strategy continued building its cash reserve.
The USD reserve stood at $4.80 billion as of August 16. Another $149.1 million was allocated from MSTR sales. The total includes expected proceeds from unsettled transactions.
Strategy created the reserve to fund dividends and interest payments. The board retains authority over fund use.
The cash position has increased quickly. Strategy entered August with about $4 billion. It added $650 million during the August 3-9 period. This took the total to $4.65 billion.
The company continues issuing common shares for liquidity. Last week’s sale of 3.46 million shares generated $333.7 million. The previous week’s sale of 6.59 million shares raised $653.1 million.
Substantial capacity remains for additional capital raising. About $21.70 billion remains available for MSTR issuance.
No sales were reported under STRC, STRF, STRK, or STRD programs. Remaining issuance capacity is significant across all preferred securities.