Michael Saylor's Strategy Buys $35M In Bitcoin, Boosts USD Reserve By $300M

On June 22, Michael Saylor announced that Strategy has acquired 520 Bitcoin (BTC) for approximately $35 million, at an average price of $67,068 per BTC. This brings the company’s total Bitcoin holdings to 847,363 BTC. The purchase is notably smaller than last week’s $100 million Bitcoin buy.

According to the latest 8K filing, Strategy also increased its USD reserve by $300 million to a total of $1.4 billion. The company stated that the move is intended to ‘continue replenishing it to support the credit quality of its Digital Credit securities.’ This suggests that the funds may be used to restore the STRC preferred stock to its $100 par value after it fell below $83 last week. Experts anticipate that Strategy might increase the dividend rate for STRC or consider stock buybacks to boost buying pressure.

The funding for both the Bitcoin acquisition and the cash reserve increase came from selling MSTR shares. Last week, Strategy sold 2.71 million MSTR shares for $335.5 million. Out of this amount, $35 million was used for the Bitcoin purchase, while the remainder likely bolstered the cash reserves. This has drawn criticism, as Strategy executives have faced backlash for selling shares.

Despite the sale, MSTR stock gained 3.44% in pre-market trading on Monday, reaching $116.40, potentially buoyed by the ongoing Bitcoin acquisition streak.

Source: https://coingape.com/michael-saylor-strategy-buys-35m-in-bitcoin-boosts-usd-reserve-by-300m/