Strategy’s cash hits $1.4B; buys 520 BTC after STRC plunge
Strategy raised its USD reserve to $1.4 billion via a common-stock sale and bought 520 BTC for $35 million after its STRC preferred shares fell to new lows.
Tysons Corner, Virginia-based Strategy increased its USD reserve to $1.4 billion and added 520 bitcoin to its holdings, the company reported on June 22. The cash build came after the firm’s STRC preferred shares dropped to record lows.
Strategy added $300 million to its USD reserve, funded entirely by a common-stock issuance that generated about $335 million. The firm purchased 520 BTC for $35 million, bringing its bitcoin reserve to 847,363 BTC. With bitcoin trading near $65,000, Strategy’s crypto holdings were worth roughly $55 billion and showed an unrealized paper loss of about $9 billion.
The 520-BTC purchase was the smallest since the company sold 32 BTC three weeks earlier, a sale that preceded its worst weekly share performance since November 2022. Michael Saylor wrote on social media that the company ‘plans to continue replenishing them to support the credit quality of its Digital Credit securities’ and added that ‘Volatility is never easy.’
STRC, Strategy’s flagship preferred stock that carries an 11.5% annual dividend, fell as low as $82.53 and has traded below its $100 par value for several weeks. The preferred security was volatile during the trading session, falling to a record low before partially recovering to about $87.45 later in the day. At its current size, STRC has added roughly $100 million in monthly costs for Strategy, making cash reserves a primary source for covering dividend and debt obligations tied to the product.
Strategy’s year-to-date bitcoin-per-share growth slowed from 12.8% to 11.8% over three weeks after the cash raise and bitcoin purchase. Economist Peter Schiff tweeted that the company had ‘destroyed value by effectively selling $1.20 worth of Bitcoin to buy $1 worth of Bitcoin.’ Strategy’s common shares rose about 3.8% to $116.60 during the session.
Other firms in the digital-credit market also adjusted positions. Asset manager Strive added 750 BTC, bringing its holdings to 19,864 BTC. Strive’s preferred product, SATA, which carries roughly a 13% dividend rate, rose to $98.26 from a recent low of $92.88, and Strive’s common shares climbed about 6.3% to $15.71. Strive CEO Matt Cole described the session as ‘the most significant stress test Digital Credit has faced so far’ and said buyers emerged to help both securities recover.
Strategy’s common shares traded higher as the company rebuilt cash while volatility in its preferred shares continued.
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