Strategy Sells 1,690 BTC as USD Reserve Rises to $4.65B

Strategy has announced further liquidations and an expansion of its USD Reserve in a new 8-K filing. The Bitcoin treasury company sold 1,690 BTC for approximately $108.6 million between Aug. 3 and Aug. 9, executed at an average price of $64,262 per bitcoin.

The firm also sold 6,585,682 MSTR shares for $653.1 million.

The BTC sale proceeds funded the $108.6M STRC repurchase. Of the MSTR proceeds, $650M went to the USD Reserve and $3.1M to cash. Strategy's USD now sits at $4.65 billion.

The Digital Credit Capital Framework

Under its Digital Credit Capital Framework, Strategy restricted its fiat reserve to preferred stock dividends and interest payments only and authorized a $1 billion repurchase program for its digital credit securities, initially prioritizing STRC, as well as an additional $1 billion common stock buyback.

The framework allows for up to $1.25 billion in bitcoin sales to fund its reserve, dividends, interest payments, and securities repurchases under the framework.

These efforts are aimed at stabilizing its preferred stock. STRC came away from its par value of $100, going as low as $75. It is now at $95.

Tracking Strategy's Holdings

Following the latest sale, Strategy has reduced its BTC holdings to 840,447, worth $54.7 billion. The firm’s stack was bought at an average price of $75,385 per bitcoin, representing a total cost of around $63.4 billion, including fees and expenses.

Strategy's holdings still account for roughly 4% of bitcoin's 21 million supply cap. However, at current market prices, the company carries around $8.7 billion in paper losses.

Reaction To BTC Sale

Bitcoin was flat on Monday immediately following the news. Last week, MSTR shares rose 9% despite the lack of BTC purchases and the various BTC liquidations over the last two months. 

This morning, MSTR shares are down, whilst STRC is up, climbing closer to its $100 par value (at the time of writing).

You can track the company's holdings using the de-anonymized Strategy entity: Strategy on Arkham. Arkham has de-anonymized the vast majority of Strategy's corporate BTC wallets. You can set real-time alerts and track their treasury transactions directly on the platform.