Strategy buys 17,994 Bitcoin for $1.3B

view original post

Strategy, the Virginia-based software company that has transformed itself into the largest corporate holder of Bitcoin, raised approximately $1.3 billion through equity sales over the past week and deployed all of those funds to acquire additional digital assets.

The company, which trades on Nasdaq under the ticker MSTR, disclosed today that it purchased 17,994 Bitcoin between March 2 and March 8 at an average price of $70,946 per coin.

The acquisition brings Strategy’s total holdings to 738,731 Bitcoin, accumulated at an aggregate cost of $56 billion and an average purchase price of $75,862.

Strategy funded the latest purchase through its at-the-market offering program, selling 6,3 million shares of Class A common stock for net proceeds of approximately $900 million and 3,7 million shares of its variable-rate Stretch preferred stock (STRC) for $377 million.

The combined $1.3B in equity issuance represents one of the company’s more active weeks of capital raisings in recent months.

The firm still retains major capacity under its ATM program. Strategy has $6.7 billion available for additional MSTR share sales, $20.3 billion for its Strike preferred stock (STRK), and $3.2 billion for the Stretch preferred series.

Strategy also amended its Omnibus Sales Agreement with its syndicate of underwriters, which includes TD Securities, Barclays Capital, Morgan Stanley, and more than a dozen other financial institutions.

The revised terms allow the company to appoint a second sales agent for any single class of security during pre-market and after-hours trading sessions. The change provides greater flexibility for large-volume transactions outside of regular trading hours.

Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.