Strategy raised $333.7 million through common-stock sales last week without buying Bitcoin, breaking from its familiar pattern of linking equity issuance with cryptocurrency purchases. The company sold 3.46 million MSTR shares between August 10 and August 16, according to a Securities and Exchange Commission filing Monday. It kept its Bitcoin holdings unchanged at 840,447 BTC.
Strategy used $52.4 million of the proceeds to cover dividends on its STRC preferred shares. It spent another $132.2 million to repurchase 1.39 million STRC shares. The company then placed $149.1 million into its US dollar reserve. As a result, the reserve rose to $4.8 billion and provided more liquidity for future financial obligations.
Meanwhile, Strategy made no Bitcoin purchases or sales during the week. The company paid about $63.36 billion for its holdings, with an average purchase price of $75,385 per Bitcoin. The latest allocation marks a change from Strategy’s previous capital-raising pattern. Historically, MSTR share sales often supplied funds for additional Bitcoin purchases.
Strategy introduced its Digital Credit Capital Framework on June 29. The framework expanded how the company can use capital raised through common equity. Under the policy, Strategy can direct funds toward preferred dividends, debt interest, securities repurchases and its US dollar reserve. The company says the reserve supports preferred-stock dividends and interest payments.
Therefore, newly raised capital no longer needs to flow directly into Bitcoin. If MSTR issuance no longer automatically increases Bitcoin holdings, how will investors assess changes in Bitcoin per share? Strategy still has about $21.7 billion of MSTR issuance capacity under its at-the-market programs. It has also authorized up to $1 billion for digital-credit securities repurchases.
Separately, the company authorized another $1 billion for MSTR repurchases. Following the latest STRC transactions, $653 million remains available under the preferred-stock repurchase program.
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The framework gives Strategy more ways to meet financial obligations without selling Bitcoin. For example, the company can raise equity and maintain a larger dollar reserve. At the same time, Strategy can use capital to support preferred securities. Last week, common-stock issuance funded STRC dividends, STRC repurchases and additional dollar reserves instead of Bitcoin purchases.
That structure can increase common-share dilution without increasing the company’s Bitcoin holdings. New equity can also add liquidity to Strategy’s broader capital structure. Strategy adopted Bitcoin as its primary treasury reserve asset in 2020. It now holds 840,447 BTC, equal to about 4% of Bitcoin’s eventual 21 million supply.
The company funds its strategy through common equity, convertible debt and several classes of preferred securities. Its June framework also permits Bitcoin sales under certain circumstances. Those circumstances include replenishing reserves, meeting dividend or interest obligations and financing securities repurchases. Strategy did not need to sell Bitcoin for those purposes last week.
Strategy raised $333.7 million through MSTR sales while keeping its 840,447 BTC position unchanged. Instead, it funded STRC dividends, preferred-share repurchases and its $4.8 billion dollar reserve, showing how its June capital framework now gives newly raised funds several uses beyond Bitcoin purchases.