Strategy sells 1,638 bitcoin and raises its cash reserve to $4 billion
The company sold $104.7 million of bitcoin last week while raising $290.6 million through common-stock sales and buying back $81.2 million of its STRC preferred shares.
Strategy sold 1,638 bitcoin for $104.7 million last week, reducing its holdings to 842,138 BTC, according to the company's SEC filing. The move came as the company raised $290.6 million by selling 3.01 million common shares.
Strategy also repurchased 912,143 shares of its STRC preferred stock for $81.2 million. The company said it will keep STRC's annual dividend rate at 12% and does not intend to recommend a reduction until the shares trade consistently near their stated $100 value, CoinDesk reported.
The balance-sheet choice
The sale is a change from Strategy's better-known pattern of raising capital to buy bitcoin. The filing says the company now holds a $4 billion cash reserve, after adding $250 million, while its bitcoin cost basis is $63.51 billion at an average purchase price of $75,419 per coin.
That reserve gives Strategy more room to fund preferred-stock obligations and other needs if bitcoin stays below its average cost. It also means the company reduced its bitcoin exposure while using equity proceeds to support a high-yield preferred security.
