Strategy added 520 BTC and $300 million in cash last week, raising its USD reserve to $1.4 billion as its STRC shares stay under pressure.
Bitcoin News
Strategy (MSTR) added a modest amount of Bitcoin (BTC) to its balance sheet last week while also building up its cash reserves. The company, led by Michael Saylor, sold about 2.7 million shares of its common stock to raise the funds, according to a Monday filing.
The stock sale brought in $335.5 million. Strategy used roughly $35 million of that to buy 520 BTC at an average price of $67,068 per coin. The remaining $300 million went into the company's cash reserve, bringing that total to $1.4 billion.
Bitcoin Buy Funded by Stock Sale Proceeds
The new purchase brings Strategy's total Bitcoin holdings to 847,363 BTC. The company has now spent roughly $64.01 billion acquiring its Bitcoin, working out to an average cost of $75,651 per coin.
The cash buildup is meant to support dividend payments on Strategy's preferred stock, STRC. The security is designed to trade close to its $100 par value, but investors have grown increasingly uneasy about whether the company can keep funding those dividends.
Stress on STRC Preferred Shares Continues
That unease came to a head Thursday, when panic selling pushed STRC to a record low below $83 before it recovered some ground into the close. STRC ended Thursday's session down 0.46% at $88.59. By Monday's premarket session, it had climbed to $90.59, still well below its $100 par value.
Bitcoin advocate Samson Mow wrote on X Monday that STRC has what he called a self-repairing mechanism. He explained that when the stock trades below $100, Strategy halts new share issuance through its at-the-market program, which limits supply. Mow said lower prices also raise the effective yield for new buyers, which can spur demand and help push the price back up.
Strategy's common stock was up 3.5% Monday morning as Bitcoin climbed back to nearly $65,000. MSTR had fallen 3.46% to close at $112.53 on Thursday, ahead of Friday's market holiday.
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