Strategy raises $1.59B flexible USD cash pool

Between Aug. 17 and Aug. 23, Strategy sold 18,261,118 shares of its common stock, raising $2.0065 billion, the company reported in an Aug. 24 filing. The filing shows $136.4 million was used to repurchase 1,431,212 shares of STRC, a variable-rate preferred security, and $300 million was transferred to a separately designated USD Reserve. The remainder, $1.5701 billion, was recorded as USD Cash. The filing reported ending balances of $5.10 billion in the USD Reserve and $1.59 billion in USD Cash; those totals included expected proceeds from at-the-market share sales that had not yet settled.

Strategy’s Bitcoin holdings were unchanged for the reporting week. The filing shows the company held 840,447 BTC at an aggregate cost of $63.36 billion, for an average acquisition cost of $75,385 per coin, and that there were no net Bitcoin purchases or sales during Aug. 17–23.

The filing distinguishes the two dollar accounts by purpose. USD Reserve is designated to cover preferred dividends and interest on outstanding debt. USD Cash is described as a flexible pool that may be used to acquire additional Bitcoin, repurchase common or preferred stock, repay or repurchase convertible notes, increase the USD Reserve, or otherwise support the company’s Bitcoin Treasury objectives. The filing notes these are permitted uses rather than commitments.

The filing does not identify a price trigger for Bitcoin purchases from USD Cash. It includes management examples referencing STRC prices of $95 or $90 as levels that could warrant support and mentions potential repurchases of common stock at deep discounts to net asset value; the filing describes those examples as guideposts rather than binding rules. STRC closed at $97.15 on Aug. 25 and quoted $97.10 after hours, about 2.9% below its $100 stated amount.

The share sales increased the company’s basic share count. The filing reported 415.929 million basic shares outstanding on Aug. 23; subtracting the 18.261 million shares issued that week yields an implied pre-week basic count of about 397.668 million, an increase of roughly 4.59%. The reported sale totals imply average net proceeds of about $109.88 per share.

After the transactions, Strategy retained $516.6 million of preferred-security repurchase authorization and $1.0 billion of common-stock repurchase authorization. Neither authorization required immediate use of USD Cash but both represent potential uses of the flexible pool.

As of the filing, the company had not deployed the $1.59 billion USD Cash balance. The filing indicates the company may deploy those funds for the uses listed above when management chooses to act.