Strategy sells $544.5 million in shares but buys no Bitcoin

Strategy sold over 5.43 million MSTR shares in the week from 20 to 26 July for a net proceeds of $544.5 million, but did not buy any additional Bitcoin. The company maintains its total position at 843,775 BTC and sees its dollar reserve grow to $3.75 billion.

Bitcoin is available at OKX and Bybit.

Share sale without new Bitcoin purchases

Strategy published an update on its at-the-market (ATM) share programme on 27 July. The official 8-K filing shows that the company did not purchase any new Bitcoin between 20 and 26 July, despite the large capital inflow from the share sale. Strategy currently holds 843,775 BTC, acquired for a total of $63.69 billion at an average purchase price of $75.476 per coin. At the time of writing, Bitcoin is trading at $65.598, meaning the company still carries a significant paper loss on its average purchase price.

In addition to the share sale, Strategy also bought back 288,930 of its own STRC preferred shares for $25 million. For the other share classes, including STRF, STRK and STRD, the company did not sell anything. The remaining capacity under the ATM programme for MSTR shares amounts to $22.98 billion.

Buyback of STRC shares continues

Strategy indicated that it intends to continue buying back STRC preferred stock as long as these shares trade below $100. The buyback programme still has $975 million in remaining authorisation. Notably, the company states that these buybacks will not come at the expense of the $3.75 billion dollar reserve.

According to Strategy, the buybacks may be financed from the sale of MSTR shares or, depending on market conditions, even from the sale of Bitcoin. The latter would be a remarkable step for a company known for its aggressive Bitcoin accumulation strategy. For now, the Bitcoin stash of 843,775 BTC remains untouched. Whether the Bitcoin price will recover sufficiently in the coming period to justify new purchases is the question occupying investors.