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Strategy padded its cash cushion for a second straight week while expanding its Bitcoin holdings, setting aside more resources for paying dividends and managing debt
The Bitcoin-buying firm’s so-called USD Reserve now stands at $1.1 billion, Strategy announced on Monday. The balance had fallen as low as $871 million last month after the company moved to repurchase a portion of its convertible debt at a discount. Amid fears that Strategy could sell more Bitcoin to maintain confidence in its flagship preferred stock, JPMorgan analysts argued last week that “a rebuilding of the company’s dollar reserves might be needed to restore confidence and reduce investor concerns.” Strategy shares rose 7.2% to $132.66, according to Yahoo Finance.
The firm’s stock jumped as high as $136 after the opening bell, before settling 24% lower over the past month. The uptick came as Bitcoin rose above $66,500, a 4% increase over the past day, according to CoinGecko. The company’s efforts to accumulate cash follow its decision to sell 32 Bitcoin for $2.5 million several weeks ago.