Strategy generated a total of $333.7 million from its common stock offerings; however, the firm did not utilize the money to acquire more Bitcoin. As it is noted in a recent SEC filing, the amount of Strategy’s Bitcoin remains the same – 840,447 BTC.
About 3.46 million MSTR common shares were issued by Strategy during the period between August 10 and August 16 as part of the firm’s at-the-market offering. The current SEC filing indicates that the firm has used the obtained money for the payment of preferred stock, share repurchases, and cash reserves, but not for Bitcoin acquisition.
Strategy Uses Stock Sale Proceeds for Dividends and Reserves
The strategy has utilized $52.4 million from the funds raised to meet twice-monthly dividend payments on STRC preferred shares. A total of $132.2 million has been used to repurchase STRC shares, whereas the rest of $149.1 million has been kept in the US dollar reserve.
In the week under review, the firm has repurchased about 1.39 million STRC shares at the cost of $132.2 million. No preferred shares of the company have been repurchased during that period.
Shares of STRC closed at $94.78 on Friday, down 1.03% for the week. However, the company’s shares were trading at $94.67 during pre-market activity on Monday morning, marking a 0.12% decrease.
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Strategy Holds 840,447 Bitcoin
Additionally, the company made no purchases or sales of Bitcoin for the week. The firm still holds a total of 840,447 BTC at a total cost of $63.36 billion to buy them.
The average cost of acquiring each bitcoin held by the firm is $75,385. With no additional purchases, the total number of bitcoins held by Strategy remains unchanged from the previous reporting period.
The latest report also indicates that the firm has decided to invest the latest raised capital into fulfilling its financial liabilities and boosting its cash reserves rather than acquiring additional Bitcoins right away.
US Dollar Reserves Hit $4.80 Billion
As of August 16, the US dollar reserves of Strategy have amounted to $4.80 billion. The aforementioned number takes into account the expected funds from stock issuance that have not been cleared by then.
The reserve is expected to assist the firm in meeting its dividend requirements in connection with preferred stocks and interest on its debts. Having such a reserve means that Strategy will have extra funds to meet its commitments without being totally dependent on future stock issues and Bitcoin transactions.
At present, according to Strategy’s recent filings, there is a much more prudent approach to using money. Although the firm still has one of the highest Bitcoin stock portfolios in its industry, the latest stock issuance worth $333.7 million did not result in further acquisitions of Bitcoin.
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This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
