Home Strategy Raises $334M But Buys No Bitcoin As Cash Reserve Hits $4.8B

Strategy Raises $334M But Buys No Bitcoin As Cash Reserve Hits $4.8B

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Strategy Raises $334M But Buys No Bitcoin As Cash Reserve Hits $4.8B
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Strategy raised $333.7 million through stock sales last week but did not buy any Bitcoin, leaving its holdings unchanged at 840,447 BTC. The company used part of the money to buy back its preferred stock, pay dividends and strengthen its US dollar reserve, which has now reached $4.8 billion. Executive Chairman Michael Saylor also said buying back Strategy’s common shares is not a priority at present, although the company could consider it if the stock trades at a very deep discount to the value of its assets.

According to a filing with the US Securities and Exchange Commission, Strategy sold 3.46 million shares of its MSTR common stock between August 10 and August 16 through its at-the-market offering programme. The company used $132.2 million of the proceeds to repurchase about 1.39 million shares of its STRC preferred stock. Another $52.4 million was set aside for STRC dividend payments, while around $149 million was added to its US dollar reserve.

Strategy’s Bitcoin holdings remained unchanged during the week. The company has accumulated 840,447 BTC at a total cost of about $63.36 billion, including fees and expenses. Its average purchase price stands at $75,385 per Bitcoin.

The larger cash reserve reflects a change in Strategy’s financial approach. The company now has about $4.8 billion in US dollars, including proceeds from stock sales that were yet to settle. The reserve is designed primarily to support dividends on its preferred shares and interest payments on outstanding debt. Company executives have indicated that maintaining a sizeable cash cushion gives Strategy more flexibility in deciding when to buy Bitcoin, repurchase shares or preferred stock, or reduce debt.

Saylor said buying back MSTR shares is currently not a priority. However, he left the door open to such a move if the stock falls to a level that represents a very deep discount to the value of Strategy’s assets.

Strategy CEO Phong Le also defended the company’s practice of issuing new MSTR shares. While additional shares can dilute existing shareholders, Le argued that the strategy can work in shareholders’ favour when MSTR trades above the value of the assets supporting each share. In such a situation, Strategy can raise money and use it to acquire Bitcoin, potentially increasing the amount of Bitcoin backing each share.

The company’s recent focus has also shifted towards STRC, its preferred stock designed to provide dividend income rather than large capital gains. Saylor said Strategy wants STRC to trade close to $100 and can use share sales or buybacks to help maintain stability around that level.

For now, the message from Strategy is clear: it is building financial flexibility rather than rushing into another Bitcoin purchase. With a large cash reserve and substantial Bitcoin holdings already on its balance sheet, the company appears willing to wait for what it considers a more attractive opportunity.

 

 

 

 

 

 

 

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Written by
Kapil Rajyaguru -

Kapil Rajyaguru is a news editor at 3.0 TV with over 15 years of professional writing experience and more than four years dedicated to the cryptoverse.

An engineer by education and a writer by passion, Kapil brings a rare mix of technical insight and storytelling finesse. A firm believer that cryptocurrencies, blockchain and AI are the building blocks of the future, he crafts in-depth news and analysis to educate, empower and prepare the masses for the next frontier of Web3.

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