Strategy raised about $2 billion by selling MSTR shares last week but bought no bitcoin, leaving its holdings unchanged at 840,447 BTC. The company split the proceeds between its USD Reserve, a preferred-stock buyback, and a newly created $1.59 billion "USD Cash" pool meant to give management more flexibility.
Strategy sold 18.26 million MSTR shares for roughly $2 billion between Aug. 17 and Aug. 23, according to an 8-K filing with the Securities and Exchange Commission on Monday. The bitcoin treasury company made no bitcoin purchases or sales during that stretch, holding its stack at 840,447 BTC for a second consecutive week.
How the proceeds were split
The company put $300 million toward its USD Reserve, lifting that reserve to $5.1 billion. It also used $136.4 million to repurchase 1.43 million shares of its variable-rate preferred stock, STRC. The remaining proceeds seeded a new liquidity account called USD Cash, which held $1.59 billion as of Aug. 23, bringing the company's total dollar liquidity across both pools to $6.69 billion.
That USD Reserve stays earmarked for preferred-stock dividends and debt interest. Meanwhile, the new USD Cash pool can go toward acquiring bitcoin, repurchasing MSTR or preferred shares, repaying convertible notes, or topping up the USD Reserve, giving management room to react faster to swings in bitcoin or its own securities.
Bitcoin holdings hold steady
Strategy's 840,447 BTC were acquired for $63.36 billion at an average price of $75,385 per bitcoin, including fees and expenses.
The firm has also repurchased about $483.4 million of preferred stock under its $1 billion Digital Credit Securities Repurchase Program, leaving $516.6 million available, while its separate $1 billion MSTR buyback authorization remains untouched.
Meanwhile, Strategy's common stock gained 6.1% last week to close at $119.25, and shares were trading higher again Monday. Over the same week, bitcoin itself rose nearly 25%, a rally analysts at Bernstein tied in part to increased U.S. Treasury buybacks of longer-dated debt.
Sources: CoinDesk, The Block, Cointelegraph
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