MicroStrategy (MSTR), led by Michael Saylor, continued selling Bitcoin and common stock last week to bolster its cash reserves.
MicroStrategy stated on Monday that during the seven days ending August 9, the company sold $108.6 million worth of Bitcoin and reduced its holdings of common stock by 6.6 million shares, raising approximately $653 million. Meanwhile, the company repurchased $108.6 million worth of MicroStrategy Series A Convertible Preferred Stock (STRC).
At the time of reporting, during Monday's U.S. stock market trading session, MicroStrategy's common stock was down 1.05%.
Currently, MicroStrategy holds approximately $58 billion worth of Bitcoin, making it the public company with the largest Bitcoin holdings globally.
Saylor stated on social media that MicroStrategy increased its U.S. dollar reserves by $650 million and repurchased $109 million of STRC preferred stock. This increased the company's "USD Duration" by 143 days to 2.7 years, while the Bitcoin credit spread of STRC narrowed by 10 basis points.
As of August 9, MicroStrategy's U.S. dollar reserves stood at $4.65 billion.
MicroStrategy gained fame for its strategy of consistently accumulating Bitcoin over the years. However, as market concerns about its financing model intensified, Saylor shifted to a capital management strategy in late May. To date, MicroStrategy has sold a cumulative total of approximately $432 million worth of Bitcoin.
Previously, to alleviate investor concerns about dilution of common stock, Saylor had attempted to make issuing STRC preferred stock the company's primary financing channel.
However, since early May, STRC has consistently traded below its $100 face value. Issuing such securities is only profitable when the share price exceeds this level. Currently, STRC is trading at around $95.
In the past, Saylor had urged investors to buy Bitcoin almost "at any cost."
