Strategy (MSTR) has made a significant move by acquiring 520 bitcoin for approximately $34.9 million, bringing its total bitcoin holdings to 847,363 BTC. This purchase comes alongside a boost to its cash reserves, which have been increased by $300 million, raising the total reserves to $1.4 billion.
The funds for these acquisitions were generated through the sale of common stock, with about 2.7 million shares sold for a total of $335.5 million. The bitcoin was acquired at an average price of $67,068 per coin. The increase in cash reserves is aimed at reassuring investors regarding dividend payments for the company’s preferred shares (STRC), which have faced volatility.
Recent concerns regarding the stability of STRC led to a sell-off that pushed its price below $83, marking an all-time low. However, the shares rebounded and rose to $90.43, although this is still below the par value of $100, which the company aims to stabilize. Meanwhile, MSTR's common stock saw a rise of 3.5% as bitcoin neared $65,000.
