Michael Saylor reiterated his Bitcoin thesis on Aug. 23, calling it a tool for converting “economic energy” into secure digital value. Strategy’s treasury, holding 840,447 BTC, has moved above its $75,385 average cost as Bitcoin trades near $77,000. The company raised $333.7 million through MSTR share sales to fund STRC preferred stock dividends and repurchases. Strategy also maintains a $4.80 billion cash reserve for obligations. CEO Phong Le indicated the firm may resume Bitcoin accumulation once STRC approaches its $100 stated value, with upcoming SEC filings expected to reveal the next treasury move.
Michael Saylor restated his Bitcoin outlook on Aug. 23, presenting the asset as a digital tool for storing and transferring economic value. The remarks came as Bitcoin’s market price moved above Strategy’s average purchase cost for its 840,447 BTC reserve.
In an X post, Saylor said Bitcoin converts “economic energy” into digital form. He said the value can be linked to a person, family, company, machine, or state.
Strategy has incorporated Saylor’s thesis in its corporate treasury. In its most recent US Securities and Exchange Commission filing, it held 840,447 BTC by Aug. 16.
It bought the cryptocurrency at a cost of $63.36 billion, inclusive of transaction fees. This brought its average cost to $75,385 per Bitcoin.
The investment is equivalent to 4% of the total 21 million BTC. As of now, BTC is trading at above the $77,000 level.
With this value, Strategy’s investment was estimated to be worth around $64.86 billion. This amount was around $1.50 billion higher than the total cost of acquisition.
The margin is an unrealized one that varies with the value of the Bitcoin. It does not include debt, tax liabilities, expenses, and preferred stock dividends.
The capital markets platform is called “Digital Credit” by Strategy. STRC is the variable-rate perpetual preferred share trading on Nasdaq.
On Aug. 17, it was reported that Strategy bought back 1.39 million STRC shares, paying $132.2 million during the week prior to this date. MSTR common-share sales provided the necessary funds.
Strategy raised $333.7 million by selling 3.46 million MSTR shares during the period from Aug. 10 till Aug. 16. $52.4 million was assigned to STRC dividends, while $132.2 million was used for repurchases.
Meanwhile, Strategy added $149.1 million to its US dollar reserve, lifting the balance to $4.80 billion. During the previous week, the company sold 1,690 BTC for $108.6 million to repurchase STRC shares.
Phong Le, the company’s chief executive, says that Strategy is expected to return to its accumulation of Bitcoin once STRC gets close to its $100 stated value. Upcoming SEC documents will reveal whether the company continues buying Bitcoin, selling MSTR stock, or continuing its investment into STRC.
