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Strategy’s preferred stock rises as it boosts cash reserves
Strategy sold 5,226 Bitcoin for $321 million across three transactions to help cover preferred dividends, and it increased total U.S. dollar reserves to $4 billion.
Strategy’s high-yielding preferred stock is rebounding as the serial cryptocurrency acquirer focuses on building cash reserves, Yahoo Finance reported. On Aug. 5, the preferred shares traded around $94, up 6% over the prior five trading sessions and more than 30% from its June low.
According to Yahoo Finance, the company’s preferred stock bottomed in late June near $71 as Bitcoin fell to about $58,000, the crypto’s low for the year. Since the end of June, Strategy sold 5,226 Bitcoin for proceeds of $321 million in three separate transactions.
The outlet said Strategy is using those sales, in part, to demonstrate it can use Bitcoin to meet its dividend obligations rather than holding the asset as idle. Strategy also repurchased $106 million of the STRC stock as it works to bring the preferred back toward its $100 par value.
Yahoo Finance added that Strategy increased its U.S. dollar reserves by $250 million on Aug. 3, lifting total cash reserves to $4 billion. The company has said it has more than two years of cash available to cover the dividend, which yields 12%, while Bitcoin traded near $64,700 on Aug. 5.
Latest closeBitcoin $64,695.00 ▲0.7%