Key facts
- Strategy increased its USD reserve to $1.4 billion.
- Strategy acquired 520 Bitcoin for $35 million.
- The company's total Bitcoin holdings now stand at 847,363 BTC.
- Funding for these actions came from $335.5 million raised through sales of Strategy's Class A common stock (MSTR).
- Strategy's perpetual preferred stock, STRC, traded below its $100 par value.
Strategy, a Bitcoin treasury company, has bolstered its USD reserve by $300 million to $1.4 billion and acquired an additional 520 BTC for $35 million. These moves were funded by $335.5 million raised from issuing common stock. The company aims to continue replenishing its reserves to support the credit quality of its Digital Credit securities.
The acquisition of 520 BTC marks one of Strategy's smaller purchases in recent weeks, bringing its total Bitcoin holdings to 847,363 BTC. Meanwhile, Strategy's perpetual preferred stock, STRC, has experienced volatility, trading below its $100 par value. This weakness has put pressure on the company, as it impacts its ability to fund Bitcoin purchases through its at-the-market offering program.
In a related development, Strategy President and CEO Phong Le revealed a personal investment of $1 million in STRC preferred stock, aiming for it to reach its $100 par value. Following his announcement, STRC stock bounced 1.46% to $89.88.