Strategy's $6.7B Piggy Bank Stays Shut as Bitcoin Crosses Back Into the Green 🏦

Strategy, the world's largest public company holding Bitcoin, raised about $2 billion through common stock sales last week while making no new Bitcoin purchases, according to a Monday filing with the US Securities and Exchange Commission. The Bitcoin treasury company sold 18,261,118 MSTR shares for $2.01 billion net between Aug. 17 and Aug. 23 through its at-the-market (ATM) offering program, an average of about $109.88 per share against $96.48 a week earlier. Strategy repurchased 1,431,212 STRC preferred shares for $136.4 million, added $300 million to its US dollar reserve, and directed the remaining proceeds to a newly launched US dollar cash account. The company reported $5.10 billion in its USD Reserve and $1.59 billion in the new USD Cash account as of Aug. 23, bringing total cash across the two pools to $6.69 billion.

The USD Cash account, created under the company's Digital Credit Capital Framework, is described in the filing as a separately designated pool of dollar liquidity held for general Bitcoin treasury purposes, including acquiring Bitcoin, paying preferred dividends and interest, repurchasing MSTR or preferred stock, repaying or redeeming convertible notes, and topping up the dollar reserve. Strategy said the new account gives management more flexibility to respond to market conditions and can fund activities "including dislocations in the markets for bitcoin or Strategy's securities." The firm made no Bitcoin purchases or sales during the week, leaving holdings at 840,447 BTC, acquired for $63.36 billion at an average price of $75,385 per Bitcoin. Strategy has not bought Bitcoin since June and has gone two weeks without selling any, having disposed of 6,948 BTC for roughly $432.5 million since May.

Bitcoin's rally later in August transformed Strategy's position. With the cryptocurrency trading around $78,400, the stack was worth about $65.9 billion, roughly $2.6 billion above cost. A week earlier, at $63,553, the position had been $9.9 billion underwater, and in July, with Bitcoin near $58,000, the company was about $13 billion in the red. On Aug. 30, as Bitcoin climbed to around $79,007, Executive Chairman Michael Saylor posted a chart of the holdings on X with the message "We're Back." Michael Saylor's Bitcoin treasury company Strategy is back in the black on its massive Bitcoin holdings after a five-day rally pushed BTC above the company's average acquisition price.

Strategy resumed buying in the week ending Aug. 30, acquiring 4,603 BTC for $369.7 million at an average of $80,318 apiece, its first major purchase since late June. The company funded the buy by selling 4,531,421 Class A MSTR shares for $602.8 million net across the week. Bitcoin claimed $369.7 million of the proceeds, while $151.8 million repurchased 1,557,177 STRC preferred shares, $50.7 million covered STRC dividends, and $30 million went into USD Cash. As of Aug. 30, Strategy held 845,050 BTC bought for $63.73 billion at an average of $75,412, with the USD Reserve at $5.10 billion and the unrestricted USD Cash account at $1.61 billion. Combined dollar assets totaled $6.71 billion, leaving net leverage at 0.0%, the company said. A separate $1 billion authorization to buy back MSTR stock remains untouched.

MSTR closed Friday at $119.25, up 27.4% on the month and its highest level in two months, though still 67% below its 52-week high of $365.21. Saylor later said on X that "Strategy now has more Total Reserve Capital than every financial services company in the S&P 500 except Berkshire Hathaway. $MSTR," while CEO Phong Le wrote that "Bitcoin and USD assets are up 34% to $72B, net leverage down to 0%, and back to buying BTC." Strategy's August 30 investor briefing, which the company calls supplemental measures with significant limitations, reported reserves of $66 billion and net reserves of $50.7 billion after stripping out $21.5 billion in senior claims including $14.8 billion of preferred stock.