The company disclosed that Strategy purchased 520 bitcoins last week at a cost of approximately $34.9 million, bringing the total holding stock to 847,363. At the same time, the company ' s cash reserves increased by $300 million to $1.4 billion, and both arrangements were financed by the sale of common shares.
Cash reserve raised to $1.4 billion
This replenishment was mainly used to support the dividends payments of the high-income priority share STRC. Recently, the market has been concerned about the stability of the STRC, and last Thursday there was an increase in related sales, with stock prices falling at $83, a new low.
However, STRC then recovered before closing, adding about 2 per cent to the early drive on Monday, reporting $90.43, but still significantly below $100. Previously, Michael Saylor had hoped to stabilize this preferential share price as far as possible near the nominal value.
General unit sales funded
The company disclosed that the above-mentioned increase in the holding of bitcoin and the cash replenishment were supported by funds from the sale of common shares. This suggests that Strategy continues to adjust the balance sheet through equity financing, but the new bitcoin is relatively limited in size.
In terms of the size of the holding stock, 847,363 bitcoins still keep Strategy one of the world ' s most interested business bitcoins holders. By contrast, the simultaneous increase in cash reserves this time responds more directly to the market ' s concern about the priority share-sharing capacity.
MSTR goes up with bitcoin.
Driven by a bitcoin rebound, Strategy's common stock MSTR rose by 3.5% on Monday. At that time, the price of bitcoin rebounded to nearly $65,000.
The market is now looking at two clues at the same time: whether Strategy will continue to expand the Bitcoin holdout by selling regular shares, and whether the new cash will ease investors ' concerns about STRC.
Additional information:STRC experienced a marked sale last week at a price that fell by $83; as of Monday morning, the stock price had risen to $90.43 but was still below $100.
