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Strategy sells shares, builds $1.59B USD Cash balance with no new Bitcoin buy
The share sale raised $2.0065 billion between Aug. 17 and Aug. 23, while Strategy kept its BTC holdings unchanged at 840,447 coins.
Strategy, the Bitcoin treasury company formerly known as MicroStrategy, raised $2.0065 billion by selling common shares from Aug. 17 through Aug. 23, then made no Bitcoin purchases during the same week, according to a CryptoSlate analysis of the companys Aug. 24 filing.
The transactions left Strategy with about $1.59 billion in USD Cash at the center of its capital allocation choices. Strategy reported an ending USD Cash balance of $1.59 billion and a separate reserve balance of $5.10 billion, with both figures including expected proceeds from ATM share sales that had not yet settled.
CryptoSlate reports that the company sold 18,261,118 shares of MSTR and used $136.4 million to repurchase 1,431,212 shares of STRC, a variable rate preferred stock. It also transferred $300 million to its separately designated USD Reserve, while the remaining $1.5701 billion went into USD Cash.
Strategy held 840,447 BTC at the end of the week, with no Bitcoin purchase or sale, and its USD Cash was described as flexible for uses such as acquiring Bitcoin, meeting obligations, buying back MSTR or preferred stock, repaying or redeeming convertible notes, or increasing the USD Reserve, CryptoSlate said. The broader purpose is to give management room to respond to market conditions without setting a fixed threshold, the filing indicates.
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