Strategy Halts Bitcoin Sales, Raises $334M via Equity Issuance

Bitcoin Holdings Remain Stable Amid Capital Shift

Strategy, the prominent Bitcoin-focused treasury company, ended its streak of weekly Bitcoin sales this past week, maintaining its cryptocurrency holdings at 840,447 BTC. The move marks a departure from three consecutive weeks of disposals that had funded the company’s dividend and buyback programs since June. With Bitcoin holdings unchanged at an average acquisition cost of $75,385 per coin, the company is now relying on alternative funding mechanisms to manage its financial commitments.

Stock Sales Replace Bitcoin Liquidation

Rather than selling Bitcoin, Strategy raised $333.7 million net by offloading 3,458,866 shares of MSTR stock, with shares averaging approximately $96.48—a decline from the prior week’s average of $99.17. According to Strategy’s regulatory filing, the company allocated these proceeds strategically: $52.4 million went toward preferred dividend payments on STRC securities, $132.2 million was directed toward repurchasing STRC preferred stock through a buyback program, and the remaining $149.1 million was added to the company’s dollar reserve.

The preferred stock repurchase retired 1,388,720 shares and leaves $653 million available from the initial $1 billion Digital Credit Securities Repurchase Program announced in late June. A separate $1 billion authorization covering MSTR common stock buybacks has not yet been accessed. The company’s USD reserve climbed to $4.8 billion from $4.65 billion the previous week, extending the company’s cash duration to 2.8 years.

Broader Context and Capacity

Strategy has now sold 6,948 BTC since May, generating roughly $432.5 million from those disposals. These sales began in May after a three-year pause, starting with a minimal 32 BTC sale before escalating to three successive weekly liquidations across July and August. The company’s latest BTC sale—occurring the week prior—involved 1,690 Bitcoin and generated $108.6 million, which went directly into the STRC repurchase effort. Operating under a capital framework from June that authorizes up to $1.25 billion in Bitcoin sales to fund operations, the company has utilized approximately $429 million of that capacity, leaving roughly $820 million undrawn.

With Bitcoin trading near $63,500 at the time of the filing, Strategy’s total BTC holdings were valued at approximately $53.4 billion—roughly $9.9 billion below the company’s aggregate acquisition cost of $63.36 billion. The company has not purchased Bitcoin since June and continues to rely on its equity markets access to fund ongoing obligations.

Source: Strategy, via Decrypt. Not financial advice.