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Strategy raises $333.7M, prioritizes STRC dividends and buybacks over BTC
The firm kept its Bitcoin holdings unchanged at 840,447 BTC after selling MSTR shares and parking $4.8 billion in US dollar reserves.
Strategy, formerly MicroStrategy, raised $333.7 million through common stock sales and directed the proceeds primarily to support its Variable Rate Series A Perpetual Stretch preferred stock and cash needs, rather than making additional Bitcoin purchases. CryptoSlate reports the company sold 3.45 million MSTR shares from Aug. 10 through Aug. 16, according to an Aug. 17 SEC filing, then used $52.4 million for STRC dividends, $132.2 million for STRC share repurchases, and $149.1 million to increase its US dollar reserves to $4.8 billion.
CryptoSlate says Strategy made no Bitcoin transactions during the period, leaving its holdings unchanged at 840,447 BTC. The company acquired those coins for $63.36 billion at an average price of $75,385 per coin, and it has not increased its BTC holdings since June 21.
The reporting also notes that Strategy has sold nearly 7,000 Bitcoin over the past two months while accumulating billions in cash and repurchasing about $347 million of STRC. CryptoSlate adds that Strategy’s shares have fallen roughly 35% over the past two months, versus about a 10% decline in Bitcoin, prompting shareholder scrutiny of the company’s new capital priorities.
During an Aug. 17 investor Q&A highlighted by CryptoSlate, CEO Phong Le rejected complaints that Bitcoin accumulation had become a lower priority than supporting STRC, saying restoring value for MSTR still depends on increasing Bitcoin per share. He also said Strategy is not planning an MSTR dividend, arguing that capital is better used to strengthen the balance sheet and expand the digital credit business, which management expects to help finance future Bitcoin purchases.
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