The increase in cash reserves is designed to reassure investors about the company’s capacity to maintain dividend payments on its struggling preferred shares, STRC.
Michael Saylor’s Strategy (MSTR), currently under pressure, offloaded additional common stock last week. The proceeds were used to purchase a relatively small amount of bitcoin while significantly strengthening its cash position by $300 million.
A filing released Monday shows the company sold approximately 2.7 million MSTR shares, raising $335.5 million. Around $35 million was allocated to acquiring 520 bitcoin at an average price of $67,068 per coin. The remaining $300 million was added to existing reserves, lifting total cash holdings to $1.4 billion.
Following this latest purchase, Strategy’s total bitcoin holdings now stand at 847,363 BTC, accumulated at a total cost of roughly $64.01 billion, or an average price of $75,651 per coin.
The capital raise is intended to support dividend obligations tied to STRC, the company’s high-yield preferred stock. Investor concerns over its stability have intensified in recent weeks, culminating in a sharp sell-off on Thursday that pushed the price to a record low below $83. Although shares rebounded into the close and gained another 2% Monday morning to $90.43, they remain well below the $100 par value Saylor had aimed to anchor.
Meanwhile, Strategy’s common stock (MSTR) rose 3.5% on Monday, tracking bitcoin’s recovery toward the $65,000 level.
