Strategy paused its Bitcoin buying last week after selling stock and building up its cash position.
In an 8-K filed with the U.S. Securities and Exchange Commission on Monday, the company said it sold about $263.5 million worth of MSTR shares during the week but did not buy or sell any Bitcoin. Most of the proceeds were kept in dollars, pushing Strategy’s cash reserves above $3.2 billion.
Stock sale raised about $263.5 million
The filing said Strategy sold 2,732,318 shares of MSTR between July 13 and July 19, generating about $263.5 million in proceeds.
Unlike its earlier pattern of continued Bitcoin accumulation, the company made no Bitcoin purchases and no Bitcoin sales during the period. Strategy also did not repurchase any of its own shares under its buyback program last week.
According to the company, most of the money raised from the stock sale was used to strengthen its cash position. Its U.S. dollar reserves increased by about $225 million and reached $3.225 billion as of July 19.
Bitcoin holdings remain at 843,775 BTC
Figures released by co-founder and executive chairman Michael Saylor show that Strategy currently holds 843,775 Bitcoin. At current market prices, those holdings are worth about $54.7 billion.
The company’s average purchase price is about $75,476 per Bitcoin, and its cumulative acquisition cost is roughly $63.7 billion, including fees and transaction costs.
Based on Bitcoin’s fixed maximum supply of 21 million coins, Strategy now holds about 4% of the network’s total supply. Still, with Bitcoin trading below the firm’s average cost basis, the company is carrying about $9 billion in unrealized losses.
Management says long-term plan is unchanged
Even though Strategy did not add to its Bitcoin position recently, management said the company’s long-term approach has not changed.
In an interview with Bloomberg TV last week, President and CEO Phong Le said Strategy would continue to act as a long-term buyer of Bitcoin.
He said the company would only begin seriously evaluating debt-related risk if Bitcoin fell to about $8,000 to $10,000. Phong Le also said he remains “Very Secure” about the company’s balance sheet and described its financial structure as stable.