Strategy Seeks to Sell Up to $5 Billion Worth of Bitcoin
Strategy's board has approved a plan to sell up to $5 billion worth of Bitcoin. This decision is part of the company's capital management plan, and it will allow Strategy to increase its dollar reserves by up to $1.25 billion, pay preferred share dividends and interest payments worth about $1.76 billion, and repurchase MSTR common stock and DigitalCredit securities for up to $2 billion.
The approval was made public on August 1 by Michael Saylor, the board chairman of Strategy, who stated that this decision is not new but rather part of the existing 'DigitalCredit capital framework' announced on June 29. He disputed reports suggesting a separate additional approval was given.
In related news, Strategy has already sold 1,638 Bitcoin at an average price of $63,957 between July 27 and August 2, securing about $104.7 million. The company used some of this money to pay preferred share dividends and repurchased STRC for the rest. Over the same period, Strategy raised $290.6 million through issuing MSTR shares, repurchased $81.2 million worth of STRC, and increased its dollar reserves to $4 billion.
On August 5, an additional 1,030 Bitcoin, worth about $66.14 million, moved out of a wallet reported to be linked to Saylor. Strategy still holds 842,138 Bitcoin worth a total of about $52.65 billion.