Strategy raised $21 million by selling about 125,000 shares of its MSTR common stock through its at-the-market offering program, and used $500,000 of cash to cover the rest. It sold none of its preferred stock during the week.
The company repurchased 1,932,145 shares of STRC, its variable-rate Stretch preferred stock, leaving $354.8 million available under its program to buy back preferred shares.
Last week, Strategy bought $29 million in Bitcoin and repurchased $176 million of STRC as it posted a $21 billion third-quarter gain.
Strategy’s dollar reserves
As of October 11, Strategy held $4.88 billion in a U.S. dollar reserve set aside for preferred dividends and debt interest, and $640.5 million in cash for broader purposes such as buying Bitcoin.
Strategy set up its USD reserve with $1.44 billion, and later established the separate USD cash pot after raising $2 billion by selling MSTR stock.
The company has also proposed that its preferred stock dividends accrue 365 days a year, and has said it could sell up to $1.25 billion of Bitcoin under its digital credit capital framework.
Strategy CEO Phong Le defended selling Bitcoin as the “right trade” in September, weeks before the firm set a new holdings record at the end of the month with a $143 million purchase. Despite the uptick in buying, traders on prediction market Myriad, owned by Decrypt‘s parent company Dastan, do not expect the firm’s holdings to surpass one million $BTC by the end of the year, putting just a 5% chance on that outcome.
