Strategy sold approximately $263.5 million worth of MSTR shares between July 13 and July 19, according to an 8-K filing with the Securities and Exchange Commission on Monday. The bitcoin treasury company sold 2,732,318 MSTR shares during the period but did not buy or sell any bitcoin. Proceeds from the MSTR sales were used to boost Strategy's USD reserve by $225 million to $3.225 billion as of July 19, reflecting the company's recent shift toward building cash reserves.
Strategy Sells 2.7 Million MSTR Shares for $263.5 Million
The firm sold 2,732,318 MSTR shares between July 13 and July 19, according to the SEC filing. Strategy did not purchase or sell any bitcoin during this period. The proceeds from the share sale increased the company's USD reserve by $225 million.
Bitcoin Holdings Remain at 843,775 BTC with Paper Losses
Strategy has retained its bitcoin holdings at 843,775 BTC, worth around $54.7 billion at current prices, according to co-founder and executive chairman Michael Saylor. The company bought these holdings at an average price of $75,476 per bitcoin for a total cost of around $63.7 billion, including fees and expenses. Strategy's holdings are equivalent to around 4% of bitcoin's 21 million supply cap, but carry around $9 billion of paper losses at current prices.
USD Reserve Reaches $3.225 Billion After Share Sale
Strategy's USD reserve stood at $3.225 billion as of July 19, following the $225 million increase from MSTR share sales. The company has predominantly chosen to build up its USD reserve in recent weeks instead of purchasing additional bitcoin.
President and CEO Phong Le said in a Bloomberg TV interview last week that Strategy intends to remain a long-term buyer of bitcoin despite its recent sales. Le said Strategy would begin considering risks associated with its debt only if bitcoin falls to around $8,000-$10,000, adding that the company currently feels very secure about its balance sheet.
Analyst Commentary on Strategy's Capital Management
JPMorgan analysts said last week that Strategy's larger cash reserves and improving institutional demand in bitcoin futures are "encouraging signs" for the bitcoin outlook, despite spot bitcoin exchange-traded fund flows remaining volatile.
CryptoQuant analysts said Strategy's new capital management strategy addresses the company's liquidity concerns by rebuilding cash reserves and pausing bitcoin purchases. However, the firm said Strategy still needs a systematic framework for timing bitcoin purchases and a disciplined plan for selling bitcoin during the next bull market.
MSTR Stock Falls 4% as Bitcoin Rises Slightly
Strategy's stock fell 4% overall last week, closing on Friday at $94.85, according to The Block's MSTR price page, down 38.6% year-to-date. Bitcoin rose around 0.5% during the same period.
According to Bitcoin Treasuries data, 197 public companies have adopted some form of bitcoin acquisition model. Tether-backed Twenty One, Metaplanet, MARA, and Adam Back and Cantor Fitzgerald-backed Bitcoin Standard Treasury Company make up the rest of the top 5, with 43,514 BTC, 43,000 BTC, 36,303 BTC, and 30,021 BTC, respectively.
FAQ
How many MSTR shares did Strategy sell between July 13 and July 19?
Strategy sold 2,732,318 MSTR shares between July 13 and July 19 for approximately $263.5 million, according to an 8-K filing with the Securities and Exchange Commission.
What is Strategy's current bitcoin holding and USD reserve?
Strategy holds 843,775 BTC, worth around $54.7 billion at current prices, bought at an average price of $75,476 per bitcoin for a total cost of around $63.7 billion. The company's USD reserve stands at $3.225 billion as of July 19.
How did MSTR stock perform last week compared to bitcoin?
Strategy's stock fell 4% overall last week, closing on Friday at $94.85, down 38.6% year-to-date. Bitcoin rose around 0.5% during the same period.
