Strategy Raises $2 Billion, Builds $6.69 Billion Cash Reserve as Bitcoin Holdings Stay Flat

Bitcoin treasury company Strategy (MSTR) raised approximately $2 billion last week by selling 18.26 million shares of common stock, according to a regulatory filing released Monday.

The company allocated $300 million of the proceeds to its USD Reserve and spent $136.4 million to repurchase 1.43 million shares of its variable-rate preferred stock, STRC. Strategy placed the remaining capital into a newly created liquidity pool called “USD Cash.”

As of Aug. 23, Strategy held $5.1 billion in its USD Reserve and another $1.59 billion in USD Cash, bringing its total dollar liquidity to $6.69 billion.

The USD Reserve is primarily intended to fund dividend payments on Strategy’s preferred shares and interest obligations on outstanding debt. The new USD Cash pool gives the company broader flexibility to respond to changing market conditions.

Strategy can use USD Cash to purchase Bitcoin, buy back MSTR common stock or preferred shares, repay convertible notes, increase its USD Reserve or cover other corporate needs. The company said the additional liquidity could help management react quickly to market dislocations involving Bitcoin or Strategy securities.

Despite its increased cash position, Strategy did not purchase or sell Bitcoin during the week ending Aug. 23. Its holdings remained unchanged for a second consecutive week at 840,447 BTC, valued at approximately $65.6 billion.

Strategy acquired its Bitcoin holdings for a total cost of $63.36 billion, including fees and expenses, giving the company an average purchase price of $75,385 per BTC.

The firm has also repurchased roughly $483.4 million of preferred stock through its $1 billion Digital Credit Securities Repurchase Program, leaving $516.6 million available. Strategy has yet to use its separate $1 billion authorization for MSTR common-stock repurchases.

MSTR shares gained around 1.2% in Monday pre-market trading to nearly $121, while STRC traded at $96.49. Bitcoin, meanwhile, remained above $78,000.