Strategy, the Bitcoin treasury company listed on Nasdaq as MSTR, expanded its Bitcoin holdings again. In a filing submitted to the U.S. Securities and Exchange Commission, the company said it bought 4,603 BTC between Aug. 24 and Aug. 30 for about $369.7 million. The average purchase price was $80,318 per Bitcoin, including transaction fees and other expenses.
After the latest purchase, Strategy held a total of 845,050 BTC as of Aug. 30. Its aggregate acquisition cost stood at about $63.73 billion, with an overall average purchase price of $75,412 per coin. Based on the disclosed figures, the latest batch was bought at roughly 6.5% above the average cost of the company’s existing holdings.
This was Strategy’s first Bitcoin purchase since late June and its largest single accumulation since May this year.
Sales between late June and early August had reduced holdings
Strategy had sold a combined 6,916 BTC in tranches between June 30 and Aug. 10, at prices ranging from $59,256 to $64,262 per coin. That brought its holdings down to 840,447 BTC at one stage.
With the latest purchase of 4,603 BTC, the company has recovered most of the coins it previously sold. Even so, its holdings remain 2,313 BTC below the 847,363 BTC it held on June 22.
According to an 8-K filing submitted to the SEC, Strategy’s most recent Bitcoin sale took place between Aug. 3 and Aug. 9. During that period, it sold 1,690 BTC at an average price of $64,262 per coin, raising about $108.6 million.
Bitcoin purchase funded through ATM share sales
Strategy said the latest Bitcoin purchase was financed through its at-the-market, or ATM, equity program. Over the same period, the company sold 4,531,421 shares of MSTR common stock and generated about $602.8 million in net proceeds. Of that amount, $369.7 million was used to buy Bitcoin.
From the remaining funds, about $151.8 million was used to repurchase 1,557,177 shares of STRC variable-rate perpetual preferred stock. Another $50.7 million was used to pay STRC dividends, while $30 million was allocated to a U.S. dollar cash liquidity account.
The company said it was issuing common stock on one side and repurchasing part of its preferred stock on the other as it adjusted its overall capital structure.
Dollar reserves as of Aug. 30
As of Aug. 30, Strategy’s U.S. dollar reserves stood at $5.1 billion, and its general U.S. dollar cash balance was $1.61 billion. The company said those funds could be used to pay preferred dividends, service debt interest, buy Bitcoin and support other capital management purposes.
Criticism over selling low and buying higher
Strategy had previously promoted a "buy only, never sell" stance and also used the phrase "always buy the top." Still, the company earlier sold part of its Bitcoin holdings during a period when Bitcoin prices had fallen and its securities were under pressure.
After it resumed large-scale buying, the move drew renewed criticism described in the source material as "sell low, buy high." The same source also noted that Strategy’s accumulation model remains heavily tied to raising capital through common stock sales, while investors are also watching the dilution risk that could come with continued share issuance.