The move to bolster cash reserves is intended to ease investor concerns about the company’s ability to sustain dividend payments on its pressured preferred shares, STRC.
Michael Saylor’s Strategy (MSTR), facing ongoing scrutiny, sold additional common stock last week. The funds were used to make a relatively modest bitcoin purchase while adding a substantial $300 million to its cash holdings.
In a filing released Monday, the company disclosed it sold about 2.7 million MSTR shares, raising $335.5 million. Roughly $35 million was deployed to acquire 520 bitcoin at an average price of $67,068 per token, while the remaining $300 million was added to the balance sheet, bringing total cash reserves to $1.4 billion.
With this latest buy, Strategy’s bitcoin holdings have climbed to 847,363 BTC, accumulated at a total cost of approximately $64.01 billion, or an average acquisition price of $75,651 per coin.
The capital raise is aimed at supporting dividend payments tied to STRC, the firm’s high-yield preferred stock. Investor unease has intensified in recent weeks, culminating in a sharp sell-off on Thursday that drove the price to a record low below $83. Although the shares rebounded into the close and added another 2% on Monday morning to $90.43, they remain significantly below the $100 par value Saylor had hoped to maintain.
Meanwhile, Strategy’s common shares (MSTR) gained 3.5% on Monday, following bitcoin’s rebound to just under the $65,000 mark.
