**Strategy** froze its bitcoin (BTC) holdings from last week at 844,447 coins, and raised $333.7 million by selling MSTR shares.

Key content

  • As of August 16, the strategy did not execute any bitcoin buying or selling during that week.

  • The $333.7 million from the MSTR share sale was used for STRC preferred-share dividends, repurchasing STRC shares, and building up U.S. dollar reserves.

  • This is the result of switching its capital-raising method back to shares after three consecutive weeks of bitcoin selling.

Strategy's bitcoin holdings

Strategy disclosed in an 8-K filing submitted on Monday that it did not buy or sell any additional bitcoin during the week through August 16.
As a result, the number of bitcoin held remained unchanged at 844,447, and the average purchase price was reported at $75,385 per coin.

Instead, the company sold 3,458,866 shares of MSTR for $333.7 million on a net basis. The average selling price per share was about $96.48, lower than the prior week's average price of $99.17.

The funds raised were divided into three parts.

  • $52.4 million in STRC preferred share dividends

  • $132.2 million for STRC common stock share buybacks

  • $149.1 million to boost dollar reserves

Of this amount, Strategy repurchased 1,388,720 shares of STRC, and there is still $653 million of execution capacity remaining under the $1 billion STRC preferred share repurchase program that was approved.

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Capital allocation framework

In recent weeks, Strategy has covered capital needs such as dividends and interest, share buybacks, and reserve build-ups by selling bitcoin. The fact that it has returned to raising funds through stock this time is meaningful from the perspective of capital structure strategy.

The company's dollar reserves were expanded from the existing $4.65 billion to $4.8 billion.
Separately, the $1 billion MSTR share repurchase program that was approved has not yet been touched.

Even up to this week, Strategy has not purchased any additional bitcoin, so the size of its cryptocurrency holdings is essentially back to where it stood after June. As of Monday, with bitcoin trading at around the $63,500 range, Strategy's total value of bitcoin holdings is estimated at about $53.4 billion.
This represents an unrealized loss of roughly $9.9 billion compared with the total purchase cost of $63.36 billion.

The halt in selling followed a disposal of 6,948 BTC accumulated since May. In this period, Strategy recovered about $432.5 million. In the prior week, it sold 1,690 BTC to secure $108.6 million.

This divestment was carried out in accordance with the capital framework 마련 in June. Under the plan, the company is allowed to sell up to $1.25 billion worth of bitcoin to fund dividends and interest payments, share buybacks, and an increase in cash and dollar reserves. As of now, it is estimated that roughly $820 million of additional selling capacity remains.

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