Strategy’s financing decisions are closely watched because the company is the largest corporate holder of Bitcoin and one of the market’s most active buyers.
The firm’s funding model has also become a template for a growing number of Bitcoin treasury companies
Strategy funded its latest Bitcoin purchase and liquidity reserve using proceeds from sales of its Class A common stock (MSTR). The company raised $335.5 million through its ATM equity program during the reporting period. While $34.9 million of the proceeds was used to buy 520 Bitcoin, $300 million was allocated to Strategy’s US dollar reserve, which is designed to support dividend payments and debt obligations. “Strategy plans to continue replenishing the USD Reserve over time based on market conditions to support the credit quality of its Digital Credit securities,” the company said in the 8-K filing.
Ongoing volatility in Strategy’s shares and preferred stock continued to draw market attention, particularly as STRC, which is designed to trade near $100, fell below $90 last week. MSTR dropped 3.46% to $112.53 at Thursday’s close ahead of Friday’s market holiday, according to Yahoo Finance data. STRC, the company’s perpetual preferred stock, slipped 0.46% to $88.59 at Thursday’s close.