Microstrategy Builds Cash Pool, Bitcoin Holdings Remain Unchanged
Microstrategy (MSTR) shares rose nearly 7% on Monday after the company announced it had strengthened its liquidity position by selling $2 billion in stock. The proceeds from this sale will be used to maintain financial flexibility and support future Bitcoin purchases, among other uses.
The company's Bitcoin holdings remain unchanged at 840,447 BTC, acquired at an average price of $75,385 per coin. At current prices, these holdings are worth around $65.8 billion, representing a paper gain of $2.4 billion.
Strategy used the proceeds from its stock sale to build a $1.59 billion cash pool, which will provide additional liquidity for various purposes, including future Bitcoin purchases, preferred-stock dividends, debt payments, and share repurchases.