Strategy Inc. sold $333.7 million of common stock during the week ending August 16 to fund the repurchase of preferred shares and increase its cash reserves. The company explicitly stated that no Bitcoin was bought or sold during this period, marking a continued pause in Bitcoin acquisitions since mid-June. This strategic move is aimed at managing its financial obligations rather than adding to its Bitcoin holdings.
The proceeds from the stock sale were allocated to several key areas. Strategy used $132.2 million to repurchase 1,388,720 shares of its variable-rate preferred stock (STRC) and allocated $52.4 million to fund STRC dividends. The remaining $150 million was added to its U.S. dollar reserve, which now stands at $4.8 billion. This increase in the USD reserve extends Strategy’s financial duration to 2.8 years, providing a buffer for future dividend and interest payments.
Strategy’s Bitcoin holdings remained unchanged at 840,447 BTC, acquired for approximately $63.36 billion at an average price of $75,385 per Bitcoin. The company's focus has shifted towards strengthening its balance sheet through repurchases of preferred stock and increasing its dollar reserves. Strategy has $653 million remaining under its preferred-stock repurchase program and $1 billion available for common-stock repurchases, although no common shares were repurchased in the recent period.
