Strategy adds 520 Bitcoin, raises cash reserve to $1.4 B

The corporate Bitcoin holder Strategy added 520 Bitcoin to its holdings last week while significantly bolstering its cash reserves, moves funded by a new round of stock sales as the company seeks to stabilize its balance sheet amid pressure on its preferred shares. The company disclosed the transactions in a regulatory filing on Monday, June 22.

Between June 15 and June 21, Strategy sold approximately 2.7 million shares of its Class A common stock, MSTR, raising $335.5 million in net proceeds. The company allocated roughly $35 million of that sum to purchase 520 Bitcoin at an average price of $67,068 per coin. The remaining $300 million was added to the company's U.S. dollar reserves, increasing that cash position to $1.4 billion.

Executive Chairman Michael Saylor stated the company increased its dollar reserve to support the credit quality of its Digital Credit securities and that it plans to continue replenishing it. The latest acquisition brings Strategy's total Bitcoin holdings to 847,363 coins, acquired at a total cost of approximately $64.01 billion, or an average of $75,651 per Bitcoin.

The substantial boost to cash reserves is widely seen as an effort to reassure...