Source: Fortune
Summary
Strategy, the company led by Michael Saylor, purchased $370 million in Bitcoin at an average price of $80,300 per BTC, according to an SEC filing. The purchase was funded by selling new MSTR shares, with the rest used for dividends, share repurchases, and cash reserves. Bitcoin rose 23% on August 21, pushing the value of Strategy’s holdings above its cost basis. The company had previously sold Bitcoin to meet financial obligations, including $544 million in sales over the summer. Strategy has shifted from debt to equity financing, introducing a new share class called STRC to attract income-focused investors.
Our Reading
The numbers tell one story.
Strategy bought $370 million in Bitcoin, using new shares and cash reserves.
Bitcoin’s rebound helped the company’s holdings exceed cost basis.
Strategy sold $544 million in Bitcoin earlier this year to meet obligations.
The company is now relying on share sales and new financial structures to fund its Bitcoin strategy.
Author: Evan Null
Strategy’s Bitcoin Buying Spree Resumes
After a two-month pause, Strategy has resumed its Bitcoin purchases, buying $370 million worth of the cryptocurrency at an average price of $80,300 per BTC. The move came after Bitcoin saw a brief rebound, with the price rising to around $78,800. The company used proceeds from new MSTR share sales to fund the purchase, while also using some of the money to pay dividends and repurchase STRC shares.
Funding Strategy Shifts From Debt to Equity
Strategy has moved away from using debt to finance its Bitcoin purchases, a shift that has drawn shareholder criticism. The company introduced a new share class called STRC in July 2025, designed to attract income-focused investors. STRC shareholders receive regular dividends, unlike MSTR shareholders, who benefit primarily from stock price appreciation.
Bitcoin’s Recent Rally Helps Strategy’s Holdings
Bitcoin’s 23% surge on August 21 helped push the value of Strategy’s holdings above its cost basis, reversing a trend of paper losses. The company had previously sold $544 million in Bitcoin to meet financial obligations, including during a period when the cryptocurrency was trading at $58,500, a 53% drop from its all-time high.
Strategy Faces Pressure to Rebuild Cash Reserves
Despite the recent purchase, Strategy is still under pressure to rebuild its cash reserves to ensure it can continue paying dividends. The company has created a financial backstop to manage dividend and interest payments, but it remains reliant on new share sales or Bitcoin sales to meet obligations.
Shareholder Concerns Over Aggressive Bitcoin Strategy
Strategy’s aggressive Bitcoin buying model has faced growing shareholder concerns, especially as MSTR shares have fallen more than 60% over the past year. The company has tried several methods to fund its approach, including issuing new shares and creating a financial backstop, but none have fully resolved the underlying challenges.
