Strategy Unloads $2 Billion in MSTR Shares, No New Bitcoin Purchases

Strategy, a bitcoin treasury company, recently sold approximately $2 billion worth of MSTR shares between August 17 and 23. The firm's sales of 18,261,118 MSTR shares resulted in net proceeds of $136.4 million, which were used to fund repurchases of Strategy's STRC preferred stock. An additional $300 million was allocated towards increasing its USD Reserve to $5.1 billion.

The remaining $1.59 billion was used to establish a new 'USD Cash' liquidity account, which will be retained for future deployment in various purposes such as acquiring bitcoin, paying dividends on Strategy's preferred stock, and repurchasing MSTR or STRC shares.

Despite the sales, Strategy's overall holdings of 840,447 BTC remain unchanged. The firm's bitcoin reserves are still valued at around $65.8 billion, purchased at an average price of $75,385 per bitcoin. This represents a paper profit of approximately $2.4 billion based on current prices.

Strategy's balance sheet has stabilized following recent pressure, according to analysts at research and brokerage firm Bernstein. They note that the firm sold only around 0.8% of its bitcoin holdings in recent weeks as it sought to bolster dividend cash reserves and support buybacks of its STRC preferred stock.