Strategy Purchases $370 Million in Bitcoin Following 10-Week Break

Strategy resumes Bitcoin accumulation with $370 million purchase

Strategy has restarted its Bitcoin buying after a 10-week pause, purchasing 4,603 BTC for approximately $369.7 million. Bitcoin is a digital currency that exists on a decentralized network, allowing for peer-to-peer transactions without a central bank.

The company funded the acquisition entirely through the sale of its own common shares, which generated $602.8 million in net proceeds during the week ending August 30. This move allowed the company to keep its $5.10 billion USD Reserve untouched, as that fund is restricted for specific uses like debt interest and dividends.

Key figures from the latest acquisition

• The company paid an average price of $80,318 per Bitcoin during the transaction week.
• Strategy now holds a total of 845,050 BTC.
• The total aggregate cost for all holdings is $63.73 billion, with an average cost of $75,412 per Bitcoin.
• Alongside its Bitcoin, the company holds $5.10 billion in a restricted USD Reserve and $1.61 billion in flexible USD Cash.

New capital management framework in action

The purchase marks a shift in how the company manages its money. Following a policy adopted in June called the Digital Credit Capital Framework, the company now actively manages both sides of its balance sheet. This means it may buy or sell assets and securities depending on market conditions.

Before this purchase, the company's ledger showed its last acquisition was on June 22. Between then and the most recent buy, the company disclosed four sales that slightly reduced its total holdings. Strategy CEO Phong Le previously stated that the firm is moving away from simply issuing capital to buy Bitcoin and toward more active financial management.

How the company allocated its recent funds

During the same week it sold $602.8 million worth of shares, the company did more than just buy Bitcoin. It used $151.8 million to repurchase preferred shares and allocated $50.7 million toward dividends. Another $30 million was moved into its flexible USD Cash account.

The company distinguishes between its USD Reserve and USD Cash. The reserve can only be used for preferred dividends and debt interest unless the board of directors approves a different use. The USD Cash account can be used more freely for buying Bitcoin or other corporate needs.

What happens next

The company still has significant room to raise more money for future moves. According to the filing, Strategy has $19.09 billion of common-stock issuance capacity remaining. It also has $364.8 million left under its authorization to repurchase its own securities.

Sources

• The Defiant