Strategy Restarts Bitcoin Buying With $370 Million Purchase

The company funded 4,603 BTC entirely with MSTR share-sale proceeds, leaving its $5.10 billion USD Reserve untouched for preferred dividends and debt interest.

Strategy restarted bitcoin purchases after a 10-week gap, buying 4,603 BTC for $369.7 million as it put a balance-sheet overhaul adopted in June into practice.

The company paid an average of $80,318 per bitcoin during the week ended Aug. 30, according to its Monday filing. The entire purchase came from proceeds of common-share sales rather than the USD Reserve, which under Strategy’s board-approved policy may be used only for preferred-stock dividends and debt interest unless the board authorizes another use.

Strategy sold 4.53 million MSTR shares for net proceeds of $602.8 million during the week. It allocated $369.7 million to bitcoin, $151.8 million to repurchase STRC preferred shares, $50.7 million to STRC dividends and $30 million to its more flexible USD Cash account.

The purchase lifted Strategy’s holdings to 845,050 BTC, acquired for an aggregate $63.73 billion at an average cost of $75,412. As of Aug. 30, the company also held a $5.10 billion USD Reserve and $1.61 billion of USD Cash.

Those cash pools serve different purposes. Under the board policy, the reserve may be used only for preferred dividends and interest on outstanding debt unless directors approve another use. USD Cash can be deployed more broadly, including for bitcoin purchases, reserve expansion and other capital-management uses. Monday’s transaction increased USD Cash while leaving the reserve out of the bitcoin purchase.