Strategy raises $2 billion via share sale

Strategy sold 18.26 million common shares between 17 and 23 August, raising $2,007 billion. Part of the proceeds will go towards the repurchase of preferred shares, part towards the existing dollar reserve, and the largest portion towards a newly established cash reserve fund. The company did not buy Bitcoin this week.

In short:

• Strategy raises $2,007 billion through the sale of 18.26 million MSTR shares
• The company establishes a new USD Cash fund of $1.59 billion for flexible deployment
• The Bitcoin stock remains unchanged at 840,447 BTC

New cash reserve for future Bitcoin purchases

Strategy announced the share sale via an 8-K filing with the SEC. Of the net proceeds of $2,007 billion, $136.4 million was used for the repurchase of STRC preferred shares under the Digital Credit Securities Repurchase Program. In addition, $300 million went to the existing dollar reserve.

The remaining amount, approximately $1.59 billion, was allocated to a newly established USD Cash fund. That fund is intended for flexible deployment, including potential Bitcoin purchases, debt repayment and the repurchase of own shares. As of 23 August, Strategy holds $5.10 billion in its dollar reserve and $1.59 billion in the new cash reserve fund.

Bitcoin position unchanged at 840,447 BTC

Despite the major capital movement, Strategy did not buy any additional Bitcoin this week. The total stock remains at 840,447 BTC, acquired for a total of $63.36 billion. That comes down to an average purchase price of $75.385 per Bitcoin. Bitcoin is currently trading around $79.900, up 3.4% over the past 24 hours.

Strategy has been building a substantial Bitcoin position for some time. The company is known for consistently buying more, even when the market is at its peak. The creation of the new USD Cash fund suggests that the company is preparing for further purchases once the timing is deemed appropriate.