Strategy paused its bitcoin acquisitions, purchasing zero BTC between August 17 and August 23 and maintaining its holdings at 840,447 bitcoins, according to a company disclosure on Monday, August 24. The total pile was acquired for $63.36 billion, including fees and expenses, with an average purchase price of $75,385 per coin.
During the same weekly stretch, the Tysons Corner, Virginia-based company increased its combined cash reserves to $6.69 billion. According to executive Michael Saylor, the total includes a USD Reserve of $5.10 billion and an additional USD Cash fund of $1.59 billion. The company also reported having roughly zero percent net leverage.
Capital Allocation and Share Repurchases
The funds were generated through the company's at-the-market program, which saw the sale of 18,261,118 MSTR shares for approximately $2.01 billion in net proceeds. From that capital, $300 million was added to the USD Reserve, $136.4 million was used to repurchase 1,431,212 shares of STRC preferred stock, and the remaining balance contributed to the new USD Cash account.
Strategy noted that $516.6 million remains available for preferred-stock buybacks, while $1 billion is authorized for potential MSTR repurchases under existing programs.
Flexible Financial Framework
The company maintains distinct allocations for its capital reserves. The USD Reserve is designated for covering preferred-stock dividends and debt interest, while the USD Cash fund provides flexibility for general purposes, including acquiring additional bitcoin, servicing debt, repurchasing shares, and bolstering the reserve.
Management stated that the expanded cash cushion is intended to support the company's digital credit capital framework, allowing it to navigate obligations and respond to market conditions involving bitcoin or its own securities.
