Strategy has sold another 1,690 BTC and increased its U.S. dollar cash reserves to $4.65 billion, according to a new filing.
BTC sale disclosed in SEC filing
In an 8-K filed Monday with the U.S. Securities and Exchange Commission, Strategy said it sold 1,690 bitcoin between Aug. 3 and Aug. 9 at an average price of $64,262 per coin, raising about $108.6 million.
After the sale, the company’s bitcoin holdings stood at 840,447 BTC. Based on current prices cited in the report, that stack is worth about $54.7 billion. Strategy said its average cost basis is $75,385 per bitcoin, with total acquisition costs of about $63.4 billion, including fees and related expenses, leaving it with an unrealized loss of $8.7 billion.
The report said Strategy’s bitcoin holdings account for about 4% of the 21 million BTC supply cap, keeping it as the listed company with the largest bitcoin holdings in the market.
MSTR share sale and STRC repurchase
Alongside the bitcoin sale, Strategy said it sold 6,585,682 shares of common stock MSTR last week through its at-the-market, or ATM, offering program, bringing in $653.1 million. The company said $22 billion remains available under that equity issuance program.
According to Strategy, most of the proceeds were used to repurchase 1,152,020 shares of preferred stock STRC. The company also increased its dollar reserves by $650 million. As of Aug. 9, those reserves had reached $4.65 billion.
New capital framework shifts reserve priorities
Strategy recently rolled out a new Digital Credit Capital Framework that redefines how its dollar reserves will be used.
Under the framework, dollar reserves will primarily be allocated to preferred stock dividends and interest payments. The company also approved a digital credit securities repurchase program of up to $1 billion, with STRC set as the initial priority.
Strategy separately approved a common stock buyback plan of up to $1 billion. It also expanded its bitcoin monetization plan, allowing the company to sell as much as $5 billion in bitcoin to replenish dollar reserves, pay dividends and interest, and repurchase related securities.
STRC rebounds above $95
After the disclosure, bitcoin was broadly flat on Monday, while MSTR rose about 0.2% in premarket trading.
Strategy’s preferred stock STRC has also recovered. The report said it had fallen below $75 in late June this year, but has now climbed back above $95.
The company’s financing focus, as described in the report, is no longer limited to how much more bitcoin it can buy. It is also dealing with how to maintain enough dollar liquidity to cover dividends, interest and securities repurchases while keeping a large bitcoin position on its books.