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Key Takeaways
- Strategy bought 4,603 Bitcoin for $369.7 million, ending a roughly two-month pause in purchases.
- The purchase was funded through stock sales, not debt, and Strategy’s total holdings now stand at 845,050 Bitcoin.
- Raised capital also covered STRC preferred stock dividends and buybacks, alongside the bitcoin purchase.
Strategy Inc. purchased 4,603 Bitcoin for $369.7 million last week, its first Bitcoin acquisition since late June. The company funded the purchase through stock sales rather than debt, according to a Form 8-K filed with the Securities and Exchange Commission on Monday. Strategy, led by Executive Chairman Michael Saylor, now holds 845,050 Bitcoin.
First Bitcoin Purchase Since Late June Funded by Stock Sales
Strategy bought the Bitcoin between August 24 and August 30 at an average price of $80,318 per coin, the filing states. The purchase ended a roughly two-month gap in the company’s buying activity, its longest pause from Bitcoin accumulation in recent memory.
The company raised the funds through its at-the-market offering program, selling 4,531,421 shares of its Class A common stock for $602.8 million in net proceeds during the same period, the filing states.
Strategy has relied on a mix of common stock sales, preferred stock issuance and debt to fund its Bitcoin purchases since adopting Bitcoin as its primary treasury reserve asset.
Capital Raised Also Funded Preferred Stock Dividends and Buybacks
The $602.8 million in common stock proceeds was not directed entirely toward Bitcoin. The filing states $50.7 million funded dividends on Strategy’s STRC preferred stock.
$151.8 million funded repurchases of STRC shares under the company’s Digital Credit Securities Repurchase Program, which it announced June 29. A separate $30 million went toward Strategy’s USD Cash liquidity account.
Strategy repurchased 1,557,177 shares of STRC stock for $151.8 million during the week, the filing states, leaving $364.8 million available under that repurchase program. The company’s separate program to repurchase its own Class A common stock, also announced June 29, still has $1 billion in remaining capacity that went unused during the period.
Total Holdings Approach 850,000 Bitcoin
Strategy’s cumulative Bitcoin holdings reached 845,050 coins as of August 30, purchased for a total of $63.73 billion at an average price of $75,412 per coin, according to the filing. The gap between that average cost basis and last week’s $80,318 purchase price reflects Bitcoin’s price recovery in recent weeks after a decline earlier this year.
Strategy’s four classes of preferred stock, listed under the tickers STRF, STRK, STRD and STRC, saw no new share sales during the period covered by the filing, leaving a combined $25.2 billion in unused issuance capacity across the four securities.
Company Maintains Separate Cash Reserves for Dividends and Purchases
The filing describes two distinct cash pools that make up Strategy’s capital framework. The USD Reserve, intended to cover dividend payments on preferred stock and interest on outstanding debt, stood at $5.10 billion as of August 30.
USD Cash, which the company can deploy more broadly, including for further Bitcoin purchases or expanding the USD Reserve, stood at $1.61 billion.
Both figures include expected proceeds from ATM share sales that had not yet settled as of that date, the filing states.
Shares and Bitcoin Both Higher Monday
Strategy’s Class A shares traded 1.65% higher in premarket trading Monday following the disclosure. Bitcoin traded at $78,400, up marginally from Friday’s levels. Strategy closed the previous session at $129.63 per share.
The resumption of purchases follows a period in which Strategy’s buying paused as the company redirected raised capital toward preferred stock dividends and buybacks rather than new Bitcoin acquisitions, according to the pattern disclosed in the filing.
