Strategy added $300 million to its USD Reserve this week, bringing the total to $1.4 billion, and used the funds to acquire 520 Bitcoin. The purchase was financed through $335.5 million in MSTR share sales, the company disclosed Monday.
Another 520 Bitcoin added
The latest acquisition marks Strategy's continued push to grow its Bitcoin holdings. With this buy, the firm now holds a significant stash of the cryptocurrency, though the company did not disclose its total Bitcoin balance in the announcement. The $300 million injection into the USD Reserve gives it more dry powder for future purchases.
MSTR share sales fuel the purchase
To fund the buy, Strategy sold roughly $335.5 million worth of MSTR shares. The company has used equity offerings as its primary funding mechanism for Bitcoin acquisitions over the past year, a strategy that dilutes existing shareholders but avoids taking on debt. Investors have generally shrugged off the dilution, with MSTR shares trading relatively steady after the news.
USD Reserve crosses $1.4 billion
The USD Reserve, which now sits at $1.4 billion, acts as a war chest for Strategy's Bitcoin buying program. The $300 million addition is one of the larger single-week increases to the reserve this year. The company has not indicated when it plans to deploy the remaining cash, but the rapid buildup suggests more purchases could come soon.
Strategy did not provide a timeline for its next Bitcoin acquisition, but with $1.4 billion in reserve, the firm has ample capacity to continue its accumulation strategy.
