Strategy pauses Bitcoin sales, increases USD Reserve to $4.8 billion

Bitcoin (BTC) treasury firm Strategy (MSTR) increased its USD Reserve to $4.8 billion after raising $333.7 million through common stock sales, while also repurchasing $132.2 million of its STRC preferred shares, according to a Form 8-K filing on Monday.

Strategy boosts USD treasury by $150 million, leaves BTC holdings unchanged

Strategy sold 3.458 million shares of its Class A common stock, MSTR, last week, generating $333.7 million in net proceeds.

The company allocated the proceeds across several financial obligations and its cash reserves. It used $52.4 million to fund dividends on its STRC preferred stock, while $132.2 million went toward repurchasing STRC shares under its Digital Credit Securities Repurchase Program. The firm allocated the remaining $149.1 million to its USD Reserve, pushing its value to $4.8 billion.

Strategy also repurchased 1.388 million STRC shares during the period at an aggregate purchase price of $132.2 million. The company noted that $653 million remains available under its preferred-stock repurchase program, while another $1 billion remains available under its MSTR common-stock repurchase program.

The company did not purchase or sell any Bitcoin during the week, keeping its total holdings at 840,447 BTC.

Meanwhile, the company continues facing scrutiny over its Bitcoin-focused treasury model. On Friday, MSCI proposed new eligibility rules that could classify companies with characteristics of non-operating firms as ineligible for its Global Investable Market Indexes. Strategy is among three existing ACWI IMI constituents that could be excluded after an assessment period.

QCP analysts highlight subdued crypto momentum

The update comes as broader markets remain sensitive to weaker economic data and uncertainty over the Federal Reserve’s (Fed's) monetary policy path.

QCP stated that weak consumer sentiment data, combined with softer labor-market figures from earlier in August, has reduced expectations for immediate monetary tightening. Fed funds futures now imply roughly a 30% probability of a 25-basis-point rate hike at the Federal Reserve’s September meeting.

For Bitcoin, QCP noted that it continues to weather the storm against a weak macro outlook.

“BTC has continued to absorb negative macro and geopolitical developments without a sustained breakdown,” QCP wrote in a report on Monday.

The analysts added that attention is now shifting toward the Federal Reserve’s July meeting minutes, due Wednesday. July PCE inflation data, second-quarter GDP figures and the Jackson Hole Economic Policy Symposium are also major events to watch.

BTC is trading at $64,030, up 1.7% in the past 24 hours at the time of writing.