Strategy sells $2 billion in shares, holds bitcoin, and creates $1.6 billion cash reserve

Strategy sells $2 billion in MSTR shares but keeps bitcoin holdings unchanged

Strategy, a company that holds bitcoin as part of its treasury, sold about $2 billion worth of its MSTR shares last week. The sale happened between August 17 and August 23. Despite the large share sale, the company did not buy or sell any bitcoin during this period.

The company’s bitcoin holdings remain at 840,447 BTC, worth around $65.8 billion. This amount was bought at an average price of $75,385 per bitcoin, including fees and expenses. The current value of these holdings is about $2.4 billion more than the purchase price.

How the proceeds were used

From the $2 billion raised by selling MSTR shares, Strategy used $136.4 million to buy back some of its preferred stock called STRC. Another $300 million was added to its USD Reserve, increasing it to $5.1 billion. The remaining $1.59 billion was placed into a new “USD Cash” account.

The USD Cash account is a separate pool of U.S. dollars that Strategy can use for various purposes. These include buying more bitcoin, paying dividends on its preferred stock, repurchasing shares, or covering other company needs.

Key details from the share sale

• Strategy sold 18,261,118 MSTR shares for approximately $2 billion.
• No bitcoin was bought or sold during this period.
• The USD Reserve was increased by $300 million to $5.1 billion.
• A new USD Cash pool of $1.59 billion was created.
• Bitcoin holdings remain at 840,447 BTC, about 4% of the total bitcoin supply.

What Strategy’s filing says

According to an official filing with the U.S. Securities and Exchange Commission (SEC), Strategy stated that the USD Cash pool is meant for “general Bitcoin Treasury Company purposes.” This includes potential future bitcoin purchases, paying dividends, repurchasing shares, or covering debt payments.

The filing also confirmed that the company’s bitcoin holdings have not changed. The current market price of bitcoin means Strategy’s holdings are now worth more than their purchase price, after previously being at a loss.

Market reaction and expert views

After the filing was made public, bitcoin’s price remained mostly unchanged. MSTR shares rose slightly in pre-market trading, continuing a recent upward trend.

Matt Cole, CEO of another bitcoin treasury company called Strive, said he believes the bitcoin bear market is over. He noted that bitcoin has recently performed well against both the U.S. dollar and gold. However, this is his opinion and not a confirmed fact.

What is confirmed

• Strategy sold $2 billion in MSTR shares between August 17 and August 23.
• No bitcoin was bought or sold during this period.
• The USD Reserve was increased to $5.1 billion.
• A new USD Cash pool of $1.59 billion was established.
• Bitcoin holdings remain at 840,447 BTC, worth about $65.8 billion.

What is still unclear

• How Strategy plans to use the $1.59 billion USD Cash pool in the future.
• Whether the company will resume buying bitcoin after recent share sales and cash reserve increases.
• How long the current bitcoin price trend will continue, as opinions vary among experts.

Why this matters for Strategy and bitcoin holders

Strategy’s actions show it is focusing on strengthening its cash reserves and financial flexibility. By selling shares and increasing its USD Reserve, the company ensures it has funds available for dividends, share buybacks, or future bitcoin purchases.

For bitcoin holders, this move signals that Strategy remains committed to its bitcoin treasury strategy but is also preparing for potential market changes. The company’s large bitcoin holdings continue to represent a significant portion of the total bitcoin supply, which could influence market perceptions.

Sources

• The Block
• SEC 8-K Filing