Strategy raises $544.5 million and buys back STRC shares

Strategy expanded its US dollar reserve to $3.75 billion last week after raising funds through stock sales and repurchasing preferred shares.

The company raised $544.5 million in cash through sales of more than 5.4 million shares of its common stock. A portion of the proceeds, $25 million, was used to repurchase 288,930 shares of its high-yielding preferred stock STRC.

Strategy's cash reserve now stands at $3.75 billion, which Executive Chairman Michael Saylor said covers 2.1 years of preferred stock dividend payments. The company's Bitcoin holdings remained unchanged at 843,775 coins.

MSTR and STRC shares each rose about 2.5 percent in pre-market trading as Bitcoin climbed to $65,000 over the weekend. An SEC filing detailing the transactions was submitted Monday morning.

Related Articles

An executive reviewing financial charts showing increased cash reserves from share sales instead of Bitcoin purchases.
Image generated by AI

Strategy raises cash reserves to $1.4 billion with MSTR sales

Reported by AI Image generated by AI

Strategy sold 2.71 million shares of its common stock last week to raise $335.5 million, directing most of the proceeds into cash reserves rather than Bitcoin purchases. The move lifted the company's US dollar holdings to $1.4 billion while adding only 520 Bitcoin. The action followed a sharp drop in the price of its STRC preferred shares.

Strategy unveiled a new capital framework on June 30 that includes a $2.55 billion reserve and adjustments to its STRC preferred security. The moves aim to address concerns over dividend obligations amid Bitcoin's decline below $60,000.

Reported by AI

CryptoQuant has called on Strategy to halt its Bitcoin purchases and rebuild cash reserves after its preferred stock STRC hit a record discount. The move follows a sharp drop in dividend coverage and recent share sales to shore up liquidity.

Strive disclosed a $7.08 million decline in the fair value of its Strategy preferred stock position over eight days in June. The drop occurred without any change in share count and highlighted broader pressure on Bitcoin treasury preferred securities. Strategy responded with a new capital management framework.

Reported by AI

Strategy disclosed the sale of 32 Bitcoin in late May, marking its first such transaction to cover preferred stock payments. The move rattled investors and contributed to a sharp drop in the company's shares and Bitcoin prices.

Strategy sold 32 Bitcoin between May 26 and May 31 to fund preferred stock dividends. The sale, worth about $2.5 million, marks the company's first disposal of the asset since 2022. Bitcoin prices fell following the disclosure on June 1.

Reported by AI

Strategy purchased 1587 Bitcoin last week for about 100 million dollars. The company financed the acquisition by selling 1.7 million shares of its MSTR stock. Total holdings now stand at 846842 Bitcoin.

 

 

 

This website uses cookies

We use cookies for analytics to improve our site. Read our privacy policy for more information.
Decline