Strategy's $602M Share Sale Fuels Bitcoin Buyup and Preferred Stock Support
Strategy, a company that issued $602.8 million in new shares last week, has split its proceeds between Bitcoin purchases and support for its STRC preferred stock. The company used $369.7 million to buy Bitcoin at an average price of $80,318, increasing its holdings from 840,447 BTC to 845,050 BTC. This move is notable because Strategy's common-stock issuance now feeds three distinct needs: Bitcoin holdings, preferred-stock obligations and buybacks, and flexible cash.
The remaining proceeds were used for STRC repurchases ($151.8 million) and dividends ($50.7 million), with $30 million going to USD Cash, a flexible account that can be used for various corporate purposes. As of August 30, Strategy reported $1.61 billion in USD Cash and a $5.1 billion USD Reserve.
Strategy's Bitcoin purchase is its largest disclosed destination for the week's MSTR proceeds, but the filing also shows how the company's common-stock issuance now supports multiple needs simultaneously.