No Purchases for the World’s Largest Corporate Bitcoin Treasury: Where Did $333.7 Million Go?

Strategy, which holds the world’s largest corporate Bitcoin treasury, did not buy or sell any Bitcoin during the August 10-16 period, while generating $333.7 million in net proceeds by selling 3.46 million MSTR shares.

Strategy’s SEC filing dated August 17 revealed the current picture regarding the company’s weekly treasury movements. Accordingly, the company made no changes to its Bitcoin reserves during the week in question.

The amount of Bitcoin held by Strategy remained stable at 840,447 BTC. While the company acquired this reserve at a total cost of $63.36 billion, the average cost was recorded at $75,385. During the same period, 3,458,866 common shares trading under the symbol MSTR were sold, and a net income of $333.7 million was achieved from the sales after commissions.

Strategy Reallocated Capital Without Making Bitcoin Purchases

The company used $132.2 million of the proceeds from the share sale to repurchase 1.39 million preferred shares known as STRC. The STRC repurchases showed that Strategy’s transactions regarding this group of shares within its capital structure are continuing.

Strategy also set aside $52.4 million to fund STRC dividends. The remaining $149.1 million from the share sale was transferred to U.S. dollar reserves. Thus, as of August 16, the company’s U.S. dollar reserves rose to $4.80 billion.

This outlook showed that instead of increasing its Bitcoin reserves in the relevant week, Strategy distributed its capital allocation among preferred share repurchases, dividend payments, and cash reserve accumulation. The information is based on the SEC filing and reporting by Wu Blockchain.