Strategy makes first Bitcoin purchase since June, investing $370 million

• Strategy announced it purchased 4,603 BTC for $369.7 million last week, its first acquisition since June.
• The company repurchased 1.5 million shares of its STRC preferred stock for $152 million.
• Strategy previously halted its Bitcoin purchases to build its US Dollar reserve, now over $5 billion.

Strategy (MSTR) splashed $369.7 million to acquire 4,603 Bitcoin (BTC) for its corporate treasury last week, its first purchase since June.

Strategy funds Bitcoin purchase and STRC buybacks through ATM proceeds

The company's BTC acquisition last week averaged $80,318 per BTC, boosting its total holdings to 845,050 BTC, according to a filing with the US Securities and Exchange Commission (SEC) on Monday.

Strategy funded the purchases with proceeds from its at-the-market (ATM) stock offering program, which generated $602.8 million from sales of its Class A common stock (MSTR). The company allocated $369.7 million from the proceeds toward Bitcoin purchases.

Strategy also repurchased 1.5 million shares of its STRC preferred stock for $151.8 million, while $50.7 million funded dividends on STRC stock. It added $30 million to its USD Cash liquidity account.

Strategy noted that $364.8 million remained available under its Digital Credit Securities Repurchase Program, while $1 billion remained available under its MSTR common stock repurchase program.

The purchase marks Strategy's first acquisition since late June, when it acquired 520 BTC. Between then and this purchase, the company sold roughly 6,916 BTC for $432.5 million, with two sales recorded in early August and its largest sale, 2,225 BTC, in early July.

Strategy announced its Bitcoin monetization program in late June, giving the company a formal framework to sell part of its BTC holdings.

Under the framework, the company can sell up to $1.25 billion of Bitcoin to fund or replenish its USD cash reserve, intended to maintain a 12-month cushion for corporate obligations. It can also use proceeds from Bitcoin sales to pay interest on outstanding debt and fund dividends on its preferred stock.

Strategy's USD reserve surpasses $5 billion after Bitcoin sales

Strategy reported a USD Reserve balance of $5.10 billion and USD Cash holdings of $1.61 billion. It initially halted BTC purchases to build its Dollar reserve, which was roughly $2.55 billion at the end of June.

The reserve is intended to support dividend payments on preferred stock and interest on outstanding debt, while the cash balance can be deployed for broader corporate purposes, including additional Bitcoin acquisitions.

Bitcoin continues its recovery from previous lows, trading near $80,000 over the past week. Its rebound from $68,000 positively impacted Strategy's stock price.

MSTR is back above $130, up 4.6% at the time of writing. The rise follows a recovery after dropping below $100 since late June, as Bitcoin dipped to $60,000 during that period. STRC is also trading near $100, with its recovery to $96 signaling renewed momentum.