Strategic Halts BTC Purchases After Raising $2.065 Billion

Strategic (MSTR) raised $2.065 billion without buying or selling Bitcoin (BTC) from August 17 to 23. During this period, the company maintained its BTC holdings at 840,447 BTC. In an 8-K filed with the SEC, the company disclosed that it sold 18,261,118 shares of MSTR common stock at market price during the same period. The total acquisition cost of the held BTC was reported at $63.36 billion, with an average acquisition cost of $75,385 per BTC. Of the raised funds, $136.4 million was used to repurchase 1,431,212 shares of STRC preferred stock, and $300 million was added to existing dollar reserves. As of the 23rd, the dollar reserves totaled $5.1 billion, with USD Cash amounting to $1.59 billion. The combined cash liquidity from the two accounts is $6.69 billion. USD Cash is a new component of the digital credit capital framework and can be used for BTC acquisitions, preferred stock dividends, debt interest payments, and more. This announcement shows that Strategic is focusing on capital structure management rather than expanding its BTC holdings. The remaining limit for preferred stock repurchases is $516 million, while the remaining limit for common stock repurchases is $1 billion. The company did not provide a timeline for when it would resume BTC purchases.

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