MSTR Passes on BTC Purchase, Adds $150M to USD Reserve
Strategy, the company behind the MicroStrategy (MSTR) brand, has reported its latest financial moves. Despite raising $333.7 million last week through a common share sale, none of that money went towards buying more Bitcoin (BTC). Instead, the funds were used to bolster the firm's cash reserve and service dividend payments on preferred stock.
The company's treasury remains unchanged, with its 840,447 BTC holding acquired at an average price of $75,385 each, including fees. The value of this stash is currently below Strategy's cost basis due to recent market fluctuations.
In a separate move, the firm repurchased 1,388,720 shares of STRC, its variable-rate preferred stock, for $132.2 million and covered STRC dividends with another $52.4 million. The remaining funds, totaling around $150 million, were added to Strategy's U.S. dollar reserve.
The current cash pile, now standing at $4.80 billion as of August 16, is intended to cover dividend payments on preferred stock and interest on outstanding debt. With a duration of 2.8 years, this reserve remains a key component of the company's financial strategy.