The strategy increases USD reserves to 2.19 billion, raising 748 million through the sale of stocks.

Source: Yellow Original Title: Strategy increases its USD reserves to $2.19 billion with stock sale of $748 million

Original Link: https://yellow.com/es/news/strategy-incrementa-reserva-en-usd-a-219-mil-millones-de-dólares-con-venta-de-acciones-por-748-millones-de-dólares Strategy Inc. disclosed that its USD reserves have increased to $2.19 billion (as of December 22).

The Bitcoin asset management company sold 4.54 million shares of common stock MSTR between December 15-21, with net proceeds of $747.8 million, according to the 8-K filing.

No preferred stocks were sold during this period.

No Bitcoin (BTC) purchases will be made this weekend.

Its holdings remain at 671,268 BTC, with a total purchase price of $50.33 billion and an average cost of $74,972 per BTC.

What happened

The strategy established a USD reserve of $1.44 billion on December 1.

Cash buffer supports the dividend payments of various preferred shares under the Strategy and the interest on outstanding debt.

Strategy maintains four series of preferred stocks: STRF, STRC, STRK, and STRD, as well as common stock MSTR.

The declaration document shows that there is still a total remaining capacity of over $41 billion in various capital plans.

The “at-the-market” issuance plan of Strategy allows companies to raise funds through controlled stock sales.

The company has widely used this mechanism in recent weeks to finance Bitcoin acquisitions and cash reserves.

Why It Matters

The decision to prioritize liquidity over Bitcoin accumulation indicates a strategic shift.

Previously, the company purchased 10,645 BTC between December 8-14, worth $980.3 million, maintaining its aggressive buying pattern.

The purchase suspension occurred when the Bitcoin trading price was around $96,000, below the recent high of over $100,000.

The USD reserves of the Strategy provide flexibility to manage debt during fluctuations in the cryptocurrency market without being forced to sell Bitcoin.

The company disclosed that the maintenance of reserves is “only constrained by the discretionary power of Strategy.”

The strategy can adjust reserves based on market conditions, liquidity needs, and other factors.

A larger cash buffer alleviates investors' concerns about the company's ability to meet preferred stock dividends and debt payments amid volatility in the cryptocurrency market.