Strategy recently sold 3.98 million shares of its common stock MSTR, raising $544.5 million through an at-the-market offering. At the same time, the company repurchased 288,930 preferred shares, STRC, for approximately $25 million at an average price of $86.52, despite STRC trading below its $100 threshold.
The firm maintains a policy not to issue STRC shares under $100 and plans to uphold its 12% annual dividend until the stock price consistently nears that mark. Strategy’s buyback program still has $975 million left, with plans to continue repurchasing STRC whenever it dips below $100, scaling back as it approaches the target price.
In addition, Strategy boosted its USD reserves by $525 million, bringing the total to a record $3.75 billion. This reserve is earmarked exclusively to cover dividend and debt payments, and cannot be used for STRC repurchases. Meanwhile, Strategy’s Bitcoin holdings remain steady at 843,775 BTC, acquired at an average cost of $75,531 per coin. No Bitcoin was bought during the week ending July 26, marking the fifth consecutive week without acquisitions.
At press time, STRC traded at $88.32, up 1.65%, while MSTR rose 7.61% to $98.65. Bitcoin, however, slipped 3.08% to $63,385.23. Strategy’s recent cash reserve increase has drawn attention for its potential impact on preferred dividends and overall financial stability.
