Bitcoin Treasury Strategy Monday announced It has sold 1,638 BTC worth approximately $104.7 Million.
The company filed a statement with the Securities and Exchange Commission stating that the coin sale occurred between July 27 and Aug 2, and the average price was $63,957.
Dividend payments were made on Strategy’s preferred stock of $52.4m, while $52.3m was spent to buy back its Stretch (STRC), preferred share.
This was the latest of a series of weeks in which Strategy chose to trim Bitcoin It is better to maintain the current level of debt than to add more. This follows a trend that started earlier in the summer, when the company relied heavily on its stock sales and money management to pay for obligations.
In the same filing, Strategy disclosed that it sold 3,011,361 MSTR shares through its “at-the-market” program over this period, earning $290.6 in net proceeds. Of that, $250 million was added to the company’s USD Reserve — a cash cushion set aside to support preferred dividends and debt interest — which now stands at $4 billion.
Strategy repurchased STRC stock for 81.2 million dollars during this week. The company has been running a buyback programme since late June. No shares of its other preferred products — Strife (STRF), Strike (STRK), or Stride (STRD) — were bought back or sold under the ATM program this period.
A total of 63.51 billion dollars was spent on the acquisition of 842138 Bitcoin, which is worth approximately $54 billion, at the current price of roughly $64,000 per coin.
Strategy’s Board also held the STRC Dividend Rate at 12 percent annually. The $0.50 per share payments were made for periods ending on August 31 and Sept. 15. The Management stated it would not consider recommending a dividend rate below 12% until STRC’s price is consistently near the $100 declared value.
Strategy maintains that its position on Bitcoin is unchanged despite the sale. CEO Phong Le has said Despite its recent Bitcoin sales, the company still plans to be a Bitcoin buyer for a very long time.
Strategy — formerly MicroStrategy — began buying Bitcoin in August 2020 as a treasury strategy to boost shareholder returns during the pandemic. Since then, it has spent over $63.5 billion to accumulate the asset. It is the world’s largest corporate Bitcoin holder. The company’s strategy sparked a wave copycat companies to adopt similar crypto-treasury policies.
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Source: bitcoinmagazine.com
