Strategy Raises $334 Million
Strategy raised $334 million last week by selling 3.46 million shares of common stock, according to a Monday filing. The company used the funds to buy back $132.2 million of its preferred stock, STRC. It also added $150 million to its cash reserves, which now total $4.8 billion. This cash is meant to cover dividend payments and interest on its debt.
Executive Chairman Michael Saylor said that while share buybacks are not a priority, they could happen if the stock trades at a big discount to net asset value. Strategy's stock, MSTR, has dropped about 38% this year, mainly due to falling Bitcoin prices. Despite this, MSTR shares rose about 5% on Monday after Saylor's comments about possible buybacks.
The company did not change its Bitcoin holdings during the week. It still holds 840,447 BTC, which were bought for about $63.36 billion at an average price of $75,385 per Bitcoin. Saylor stressed the need to keep enough cash reserves to support dividend payments for STRC, which has become a key focus for the company amid market changes.
Related coverage: Berkshire Hathaway Buys Back $4.5 Billion in Shares.
The increase in cash reserves may give Strategy the flexibility to manage its dividend obligations and possible share buybacks. This could affect MSTR's stock price. Investors will be on the lookout for more news about the company's plans for its Bitcoin holdings and any updates on future buybacks or stock sales.
Based on reporting by: coindesk.com