Particle.news
Download on the App Store

Strategy Pauses Net Bitcoin Buys to Build $4.65 Billion Cash Cushion and Support Preferreds

The company says it is raising cash to protect its 12% STRC dividend before it resumes Bitcoin accumulation later this year.

Overview

  • The company raised cash this month by selling 1,690 BTC for about $108.6 million and issuing 6.59 million common shares that brought its designated U.S. dollar reserve to roughly $4.65 billion while cutting holdings to 840,447 BTC.
  • Chief executive Phong Le told Fox Business that Strategy has paused net buys and plans to resume accumulating Bitcoin before year-end once the reserve and preferred-support targets are met.
  • Proceeds were used in part to repurchase about 1,152,020 shares of STRC preferred stock as the company works to restore the preferred to its $100 par and to ensure payment of its bi-monthly 12% dividend; STRC currently trades below par near $95.
  • Strategy published a Bitcoin Credit model that maps how changes in Bitcoin price and volatility could affect its balance sheet across roughly $53.5 billion of BTC and about $21.95 billion of debt and preferred obligations.
  • Institutional context and analyst views matter: the Swiss National Bank reported holding 736,300 MSTR shares for indirect Bitcoin exposure and TD Cowen maintains a Buy rating with a $400 target and large estimated potential BTC purchases if accumulation resumes.