Strategy Sells $2.01B in MSTR Shares Amid Bitcoin's $80K Surge

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Strategy sold 18,261,118 MSTR shares via its ATM program from August 17 to 23, raising $2.0065 billion. The firm used part of the proceeds for preferred stock buybacks and boosted its USD reserve to $5.1 billion, while setting up a USD Cash account with $1.59 billion. Value investing in crypto remains a focus as Strategy holds 840,447 BTC, worth $67.82 billion, maintaining its position as the largest Bitcoin DAT. The move reflects a calculated risk-to-reward ratio approach amid Bitcoin’s climb toward $80,000.

After several Bitcoin sales over the previous two months, Michael Saylor’s Strategy made no Bitcoin purchases or sales last week.

Instead, the largest Bitcoin DAT sold 18,261,118 MSTR shares through its ATM program between the 17th and 23rd of August. The sales generated $2.0065 billion in net proceeds.

How did Strategy use proceeds from its MSTR share sale?

According to the recent 8-K filing, about $136.4 million went toward repurchasing Strategy’s STRC preferred stock. Another $300 million was added to its existing USD reserve, bringing that reserve to approximately $5.1 billion.

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The remaining proceeds increased its newly established USD Cash account, which held $1.59 billion as of the 23rd of August. The reported balances included expected ATM proceeds that had not yet settled.

So, this time, Strategy raised liquidity by selling MSTR shares rather than using the proceeds to purchase more Bitcoin [BTC]. This, in no sense, means that Strategy has abandoned its Bitcoin strategy.

Saylor’s firm remains the largest Bitcoin DAT, which holds 840,447 BTC, worth roughly $67.82 billion.

Strategy BTC holdings over the years
Source: BitcoinTreasuries.NET

This is based on the current price action of Bitcoin, wherein BTC has crossed past the $80k level, trading at $80,709.72 at press time after a hike of 5% in the past 24 hours.

Strategy acquired its Bitcoin at an average price of $75,385 per BTC. At the stated Bitcoin price, its holdings carried an unrealized gross gain of roughly $4.47 billion.

MSTR performance still needs attention

Needless to say, this also helped MSTR itself.

According to Google Finance data, MSTR closed at $122.63 on the 24th of August, gaining approximately 25.5% over the previous week. The rally continued despite Strategy’s share issuance, while Bitcoin’s recovery provided a strong tailwind.

MSTR must maintain this momentum to recover its losses from the past three months.

MSTR stock YTD
Source: Google Finance

For context, MSTR closed at $195.94 on the 11th of May. Therefore, the stock remained well below its May level.

However, with Saylor himself warning investors to be prepared for potentially “difficult years,” uncertainty remains.

Final Summary

  • Strategy raised $2.0065 billion through MSTR share sales and established a USD Cash account holding $1.59 billion.
  • Despite these changes, Strategy remains the largest Bitcoin DAT.
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