Recent Financial Developments
In a recent filing, Strategy reported no transactions involving Bitcoin for the past week, putting an end to a streak of weekly sales that had been utilized to finance its dividends and stock repurchases since June. The current Bitcoin reserves stand at 840,447 BTC, with an average acquisition cost of $75,385 per unit.
Stock Liquidation and Financial Allocation
Instead of engaging in Bitcoin trades, the company successfully generated $333.7 million by liquidating 3,458,866 shares of its MSTR stock at approximately $96.48 each, showing a decline from the previous week’s average of $99.17. According to the filed document, the proceeds from this sale are allocated in three directions:
- $52.4 million is earmarked for dividends on STRC preferred stock.
- $132.2 million is intended for buying back that same stock.
- $149.1 million will bolster its dollar reserves.
The stock repurchase involved acquiring 1,388,720 STRC shares, leaving a balance of $653 million of a $1 billion program for repurchasing Digital Credit Securities that was announced on June 29. Additionally, the existing authorization to repurchase MSTR stock also remains untouched at $1 billion.
Dollar Reserves and Bitcoin Sales
The company’s dollar reserve, which is maintained to cover preferred dividends and interest, has now reached a total of $4.8 billion, increasing from $4.65 billion the previous week.
Over the course of the past few months, Strategy has liquidated 6,948 BTC, accruing approximately $432.5 million since the beginning of May. This selling activity initially commenced with a modest 32 BTC and peaked with three consecutive weekly sales during July and August. The recent sale of 1,690 BTC alone generated $108.6 million, which has been reinvested back into the purchase of preferred stock already financed through equity issuance this week.
Capital Plan and Future Outlook
These strategic disposals align with a capital plan initiated in June, enabling up to $1.25 billion in Bitcoin sales to support dividends, interest payments, stock buybacks, and reserve funding. To date, around $429 million of this investment capacity has been utilized, leaving about $820 million unspent from that authorization. Notably, the company has not engaged in any Bitcoin acquisitions since June.
As Bitcoin trades around $63,500, Strategy’s holdings are now valued at approximately $53.4 billion compared to the $63.36 billion it originally invested, leading to an estimated loss of about $9.9 billion.
