Strategy Buys 520 BTC for $35M, Bolsters Cash Reserves to $1.4B
Strategy, a Bitcoin treasury company, accumulated cash for a third straight week, increasing its USD reserve by $300 million to $1.4 billion, derived from issuing common stock. The firm also purchased 520 BTC for $35 million, its smallest buy since selling 32 BTC three weeks ago. With Bitcoin at $65,000, its holdings of 847,363 BTC are worth $55 billion, showing an unrealized loss of $9 billion. The company's preferred share STRC faced volatility, falling to $82.53 from its $100 par value, testing investor confidence. STRC adds $100 million in monthly costs, making cash reserves crucial for sustainability. Strategy's Bitcoin-per-share growth slowed from 12.8% to 11.8% year-to-date, drawing criticism from economist Peter Schiff. Meanwhile, asset manager Strive outpaced Strategy, buying 750 BTC, bringing its total to 19,864 BTC worth $1.3 billion. Strive's preferred product SATA rose 0.6% after a dip, with CEO Matt Cole attributing the weakness to forced selling from STRC's spillover.
Key facts
- Strategy increased USD reserve to $1.4 billion, funding via common stock issuance.
- Purchased 520 BTC for $35 million, smallest buy in three weeks.
- Holdings total 847,363 BTC worth $55 billion, with $9 billion paper loss.
- STRC preferred share fell 17% from par value, adding $100M monthly cost.
- Strive outbought Strategy, adding 750 BTC for total 19,864 BTC.
- Strategy's Bitcoin-per-share growth slowed from 12.8% to 11.8% YTD.