Strategy Allocates $35M to Bitcoin, Cash Pile Stands at $300M

The effort to build up cash reserves is aimed at calming investor concerns over the company’s ability to continue paying dividends on its pressured preferred shares, STRC.

Michael Saylor’s Strategy (MSTR), which has been under strain, sold additional common stock last week. The proceeds were used to make a relatively small bitcoin purchase while significantly boosting its cash position by $300 million.

According to a Monday filing, the company sold roughly 2.7 million MSTR shares, raising $335.5 million. About $35 million went toward the purchase of 520 bitcoin at an average price of $67,068 per coin, while the remaining $300 million was added to the balance sheet, increasing total cash reserves to $1.4 billion.

Following the latest acquisition, Strategy’s total bitcoin holdings now stand at 847,363 BTC, accumulated at a total cost of approximately $64.01 billion, or an average purchase price of $75,651 per bitcoin.

The capital raise is intended to support dividend payments on STRC, the company’s high-yield preferred stock. Investor anxiety has grown in recent weeks, culminating in a sharp sell-off on Thursday that pushed the price to a record low below $83. Although shares recovered into the close and rose another 2% on Monday morning to $90.43, they remain well below the $100 par value that Saylor had aimed to maintain.

Meanwhile, Strategy’s common stock (MSTR) gained 3.5% on Monday, as bitcoin rebounded to just under $65,000.