Strategy, the corporate bitcoin treasury company formerly known as MicroStrategy, has sold $467 million worth of its MSTR shares through an at-the-market equity offering program. The sale adds to the company cash reserves, which have climbed to approximately $3 billion.
Despite the significant equity sale, Strategy bitcoin holdings remained unchanged for a second consecutive week at 843,775 BTC. The company has paused its weekly bitcoin purchases as it focuses on building cash reserves, a shift from its previous pattern of consistent accumulation.
The equity offering comes amid ongoing pressure on Strategy stock price, which has fallen significantly along with the broader decline in bitcoin from its all-time highs. MSTR shares have been trading at a discount to the value of the company bitcoin holdings, creating what analysts describe as net asset value compression.
CEO Phong Le has indicated that the company views the current environment as one requiring financial flexibility. Building cash reserves provides Strategy with options, including the ability to buy bitcoin at lower prices or meet debt obligations without being forced to sell its core asset.
The company previously sold 3,588 BTC for $216 million to fund dividend payments on its Digital Credit securities, its largest bitcoin sale on record. That sale raised questions about whether Strategy was shifting its strategy from permanent accumulation to active treasury management.
Strategy remains the largest publicly traded corporate holder of bitcoin, with its holdings representing approximately 4 percent of all bitcoins that will ever be mined. The company total bitcoin position was acquired at an average price of approximately $37,000 per coin.
This article was adapted from The Defiant. Read the original here.
