Strategy Sells $395 Million in Bitcoin to Buy Back Shares and Boost Cash Reserve
Strategy's recent $395 million in Bitcoin and MSTR stock sales have been used to buy back STRC shares and expand its cash reserve to $4 billion, according to an August 3 filing with the US Securities and Exchange Commission.
The company has sold a total of 5,258 BTC this year, including 1,638 BTC sold between July 27 and August 2 for $104.7 million, and issued about 3.01 million MSTR common shares for another $290.6 million.
None of the nearly $395 million raised went toward new Bitcoin purchases, but was instead used to fund preferred dividends, repurchase STRC shares, and complete the expansion of its US dollar reserve.
The company has been trying to get STRC back to par since May, when it started trading at a discount. Strategy President and CEO Phong Le said buying STRC below par allows the company to retire future dividend obligations at a discount while strengthening demand as the shares move toward $100.