- Strategy bought 4,603 BTC for $369.7 million, its first Bitcoin purchase in two months.
- The company now holds 845,050 BTC, acquired for $63.73 billion at an average price of $75,412.
- Strategy funded the purchase mainly by selling $602.8 million of MSTR shares through its ATM program.
Strategy (NASDAQ: MSTR) reverted to its Bitcoin plan. It disclosed a $369.7 million buy in an SEC filing on Monday. This purchase turns out to be Strategy’s first one in the last two months. Michael Saylor’s company is the largest corporate Bitcoin owner, and its comeback from selling to buying might increase confidence among investors.
Strategy bought 4,603 Bitcoin between August 24 and 30 for an average of $80,318 per Bitcoin, as per the SEC filing. This brings Strategy’s total holdings to 845,050 Bitcoin. Strategy has already spent $63.73 billion in accumulating this stake in Bitcoin. Its average price per Bitcoin is $75,412.
Saylor confirmed the figures in an X post on August 31, saying that the company owns “845,050 bitcoin” and $6.71 billion in what they call “USD Assets” which consist of USD Reserve and USD Cash accounts. The net leverage of the company is 0.0%.
Strategy raises $603M from stock sales
The purchase was reportedly done without spending any extra money. As part of its ATM program, Strategy raised a net of $602.8 million through selling 4,531,421 shares of MSTR stock in one week.
$369.7 million was spent to purchase Bitcoin, $151.8 million was spent to purchase STRC preferred stock, $50.7 million was spent on dividend payments on preferred stock, while the remaining $30 million was spent on increasing the company’s USD Cash reserves.
The issuing of stocks to acquire Bitcoin has always been the way of funding the company’s operations. The company decided to restart the process only when the prices of its stocks recovered enough to be a more profitable way of acquiring capital compared to borrowing.
Strategy pays nearly 29% more to replace Bitcoin
That approach has turned out to be quite costly. From May to August, the company sold 6,948 BTC for around $432.5 million ($62,250 each). The repurchase at the price of $80,318 per coin implies that the company overpaid by almost 29%. The final result is that Strategy is down 2,345 BTC, but it managed to get around $63 million in the process.
The summer sales happened for certain reasons. When the share price of STRC fell below its par value of $100, a funding source of the company was closed off.
In order to continue with the process, the company has decided to launch the Digital Credit Capital Framework, under which it plans to sell Bitcoin up to $1.25 billion to pay dividends and repurchase its own preferred stock. At press time, Bitcoin costs $77,849.
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FAQs
How much Bitcoin did Strategy buy and at what price?
Strategy bought 4,603 BTC for $369.7 million between August 24 and 30, at an average of $80,318 per coin, according to a filing with the SEC.
How did Strategy pay for the purchase?
It sold 4,531,421 MSTR shares through its at-the-market equity programme, raising $602.8 million net of commissions, and used $369.7 million of that for Bitcoin, with the rest going to STRC buybacks, dividends and cash.
How much Bitcoin does Strategy hold now?
After the purchase, Strategy holds 845,050 BTC, acquired for $63.73 billion at an average cost of $75,412 per coin, alongside $6.71 billion in USD assets.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Ashish Kumar
Ashish Kumar is a crypto and financial journalist with eight years of newsroom experience. He covers what’s happening with crypto markets, regulation, DeFi, and exchange ecosystems. He has worked with Coingape, Todayq, and Newsroompost. Ashish holds a PGDP in English Journalism from the IIMC. He has also interviewed industry figures including Arthur Hayes, Yat Siu, Austin Federa, and more.
