Strategy sells 1,690 bitcoin, raises $653 million from MSTR shares
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Strategy sold 1,690 bitcoin for $108.6 million and used the proceeds to repurchase 1.15 million shares of its variable-rate preferred stock, STRC. The company also raised $653.1 million through the sale of 6.59 million shares of its common stock, MSTR. Out of this, $650 million was added to its USD reserve, while the remaining $3.1 million was added to its cash balance.
Why it matters
The transactions demonstrate Strategy's use of bitcoin sales to repurchase preferred stock and bolster cash reserves, potentially signaling adjustments in capital structure or liquidity management. The raise from common stock sales to increase the USD reserve may reflect efforts to maintain a strong cash position amid market dynamics.
Key context
Strategy held 840,447 bitcoin after the sale, bought for a total of $63.36 billion at an average price of $75,385 each. The 1,690 bitcoin sold went for an average net price of $64,262. The company has remaining capacity to repurchase $785.2 million in preferred stock and $1 billion in common stock under current repurchase programs.
Key numbers and entities
Strategy (MSTR) sold 1,690 bitcoin for $108.6 million. It sold 6.59 million MSTR shares raising $653.1 million. It repurchased 1,152,020 STRC shares for $108.6 million. Bitcoin holdings stand at 840,447 BTC. USD reserves increased to $4.65 billion as of August 9. Both MSTR and STRC shares were up 0.5% pre-market, with bitcoin near $65,000.
What remains unclear
The source does not flag open questions or uncertainties.