Strategy Raises $2B From MSTR Sales to Create Dedicated Dollar Reserve
- Strategy raised around $2 billion last week by selling 18.26 million MSTR common shares, according to a filing published Monday.
- The Bitcoin treasury company put $300 million of the proceeds into its USD Reserve and spent $136.4 million to repurchase 1.43 million shares of its variable-rate preferred stock, STRC.
- Strategy placed the remaining funds into a newly created liquidity pool called “USD Cash,” expanding the company’s readily deployable capital.
- As of Aug. 23, the company held $5.1 billion in its USD Reserve and $1.59 billion in USD Cash, giving it approximately $6.69 billion in total dollar liquidity.
- The USD Reserve remains dedicated to covering dividends on Strategy’s preferred securities and interest payments on its outstanding debt.
- The new USD Cash pool has fewer restrictions and can be used to purchase Bitcoin, buy back MSTR or preferred shares, repay convertible notes, increase the USD Reserve or fund other corporate needs.
- Strategy said the additional cash buffer will give management greater flexibility to act quickly when market conditions shift or Bitcoin and its securities experience pricing dislocations.
- Strategy did not buy or sell Bitcoin during the week ended Aug. 23, leaving its holdings unchanged at 840,447 BTC, valued at roughly $65.6 billion, for a second consecutive week.
- The company’s Bitcoin holdings were acquired for about $63.36 billion at an average purchase price of $75,385 per BTC, including fees and expenses.
- Strategy has repurchased roughly $483.4 million of preferred stock under its $1 billion Digital Credit Securities Repurchase Program, leaving $516.6 million of capacity.
- Its separate $1 billion authorization for MSTR common-stock buybacks remains unused.
- MSTR rose about 1.2% to nearly $121 in Monday’s premarket session, while STRC traded around $96.49. Bitcoin remained above $78,000.
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