Strategy has purchased 4,603 Bitcoin for $370 million, marking its first acquisition since June, funded by MSTR stock sales.
Strategy's Significant Bitcoin Acquisition
Strategy has made a substantial return to Bitcoin purchasing after a two-month hiatus, acquiring 4,603 BTC for approximately $369.7 million between August 24 and 30. This acquisition was executed at an average price of $80,318 per Bitcoin, as per a filing with the Securities and Exchange Commission.
Following this latest purchase, Strategy's total Bitcoin holdings now stand at 845,050 BTC, which were acquired at an average cost of $75,412 each, summing up to a total investment of $63.73 billion.
Financing the Acquisition
The funds for this Bitcoin purchase were generated through the sale of 4,531,421 MSTR shares via an at-the-market program, resulting in $602.8 million in proceeds. The allocation of these funds included $369.7 million for Bitcoin, $151.8 million for repurchasing STRC shares, $50.7 million for preferred stock dividends, and $30 million added to its USD Cash reserves.
Market Activity Overview
In the preceding months, between May and August, Strategy sold 6,948 BTC for around $432.5 million, averaging approximately $62,250 per Bitcoin. The recent acquisition reflects a significant price increase of 29% compared to their earlier sales. Despite the repurchase, Strategy's net Bitcoin holdings have decreased by 2,345 BTC compared to before the selling period, while still retaining about $63 million in cash from those sales.
After an earlier financing method became unavailable when STRC fell below its $100 par value, Strategy established a Digital Credit Capital Framework. This framework allows for up to $1.25 billion in Bitcoin sales for dividends and stock buybacks, enabling the company to resume acquisitions when MSTR's price became more favorable for equity financing.
Current Financial Position
As of August 30, Strategy's total dollar assets, including USD Reserve and USD Cash, reached $6.71 billion, with a net leverage of 0.0%. The USD Reserve, primarily allocated for preferred dividends and debt interest, amounts to $5.10 billion, while unrestricted USD Cash stands at $1.61 billion. Additionally, the company repurchased 1,557,177 STRC shares for $151.8 million, leaving $364.8 million available under its $1 billion digital credit repurchase authorization, alongside an unused $1 billion for MSTR stock buybacks.
