Strategy raises cash by selling common stock; bitcoin holdings unchanged

Strategy raised $333.7 million last week through the sale of common stock but did not buy additional bitcoin, it showed.

As of Aug. 17 local time, blockchain outlet Cointelegraph reported the company’s bitcoin holdings were unchanged at 840,447.

An 8-K filing with the U.S. Securities and Exchange Commission showed Strategy sold 3.46 million MSTR common shares from Aug. 10 to 16 through an at-the-market sale programme. The fundraising focused on cash outlays related to preferred stock and expanding dollar reserves rather than buying bitcoin.

Of the proceeds, $52.4 million was earmarked to fund twice-monthly dividends on STRC preferred stock, and $132.2 million was used to repurchase the same STRC preferred stock. It did not repurchase other preferred securities or MSTR common stock.

The remaining $149.1 million was added to dollar reserves. Strategy’s dollar reserves rose to $4.8 billion as of Aug. 16, including estimated proceeds from stock sales that had not yet settled. The company is holding the reserves to support preferred dividends and interest payments on existing debt.

There were no changes to its bitcoin operations. Strategy did not buy or sell bitcoin during the period, and the total acquisition cost of its 840,447 bitcoin holdings, including fees and expenses, was $63.36 billion. The average purchase price was calculated at $75,385 per coin.