cpeditor
- Strategy raised nearly $2 billion last week after selling 18.26 million MSTR common shares, according to a filing issued Monday.
- The Bitcoin treasury company allocated $300 million of the proceeds to its USD Reserve and used $136.4 million to buy back 1.43 million shares of its variable-rate preferred stock, STRC.
- The rest of the funds went into a newly established liquidity pool known as “USD Cash,” creating another readily available source of capital for the company.
- As of Aug. 23, Strategy had $5.1 billion in its USD Reserve and $1.59 billion in USD Cash, giving it total dollar liquidity of approximately $6.69 billion.
- Strategy’s USD Reserve is set aside for paying dividends on preferred securities and meeting interest obligations on its outstanding debt.
- The new USD Cash pool is more flexible and can be used for Bitcoin purchases, MSTR or preferred-stock buybacks, convertible-note repayments, additions to the USD Reserve and other corporate purposes.
- Strategy said the additional cash flexibility will allow management to respond faster to changing market conditions, including potential dislocations in Bitcoin and the company’s securities.
- The company reported no Bitcoin purchases or sales during the week ending Aug. 23, keeping its holdings at 840,447 BTC, worth around $65.6 billion, for a second consecutive week.
- Strategy acquired its Bitcoin stash for approximately $63.36 billion at an average cost of $75,385 per BTC, inclusive of fees and expenses.
- The company has repurchased approximately $483.4 million of preferred stock under its $1 billion Digital Credit Securities Repurchase Program, leaving $516.6 million in remaining capacity.
- Strategy’s separate $1 billion authorization for MSTR common-stock repurchases remains unused.
- MSTR gained roughly 1.2% to nearly $121 in Monday premarket trading, while STRC was around $96.49. Bitcoin was trading above $78,000.
