No change in bitcoin holdings as Strategy boosted dollar reserve, bought back more STRC last week
Strategy, a major corporate bitcoin holder, maintained its reserve of 840,447 BTC last week while allocating capital to preferred stock repurchases and U.S. dollar reserves. The company's USD reserve grew to $4.8 billion to support debt and dividend obligations.
Why it matters
As one of the largest institutional holders of bitcoin, Strategy's capital allocation strategy serves as a bellwether for corporate treasury management in the cryptocurrency sector.
The company did not buy or sell any bitcoin during the week ended Aug. 16, leaving its bitcoin reserve unchanged at 840,447 BTC. The holdings were acquired for $63.36 billion at an average price of $75,385 per bitcoin, including fees and expenses.
Strategy used $132.2 million of the stock-sale proceeds to repurchase 1,388,720 shares of its variable-rate preferred stock, STRC. It allocated another $52.4 million to STRC dividends and added approximately $150 million, to its U.S. dollar reserve.
The reserve increased to $4.80 billion as of Aug. 16, extending Strategy’s USD duration to 2.8 years. It is intended to support dividend payments on the company’s preferred stock and interest payments on its outstanding debt.
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