Cash is King: Strategy Takes a Break from Bitcoin Mania
Cash is King: Strategy Takes a Break from Bitcoin Mania
So, Strategy, the brainchild of Michael Saylor, just made a big splash in the finance pool by adding a hefty chunk of cash into its bank account—talk about a cash cow! They recently flung open the doors to a spectacular stock sale, and it looks like they’re taking a breather from the wild world of Bitcoin for a bit. Yep, you heard it right: Bitcoin (BTC) is taking a backseat while they decide their next big move.
In a twist that has everyone buzzing, they’ve apparently switched gears from a mad rush to hoard Bitcoin, as their latest financial updates suggest a major focus on stacking U.S. dollars instead. Gone are the days of aggressive Bitcoin shopping sprees! Saylor was all hyped up on social media about this and shared the scoop, highlighting what’s been happening with their cash reserves and, of course, their beloved Bitcoin stash.
Between December 15 and December 21, Strategy raked in some serious bucks through its slick ATM equity program. But don’t get too excited—no preferred stock offerings were unleashed during that week, meaning they still might have billions left in their war chest. Can you believe it? Apparently, there’s still over $20 billion worth of STRK preferred stock just lounging around.
But hold your horses! Instead of dipping into that preferred stock, they decided to flex their common stock muscles instead, selling about 4.5 million shares of Class A common stock. This little maneuver netted them around $747.8 million (after a little fee wrangling). And fret not, dear reader, they still have a juicy $11.8 billion worth of common stock waiting for its moment in the spotlight.
Now, while this financial powerhouse is busy beefing up its cash reserves, they hit the pause button on Bitcoin purchases. Yep, you guessed it—during that same week, they didn’t add a single Satoshi to their wallet, keeping their total stash at a whopping 671,268 BTC. That’s a whole lot of Bitcoin, folks! They’ve done the math and these lovelies cost them about $50.33 billion at an average price of around $74,972 per coin. Oof, that’s some serious dough.
By plumping up their cash reserves recently, Strategy is just trying to build a comfy safety net to tackle any financial obligations that come their way. Starting the month with a mere $1.14 billion, they’ve blown that up to about $2.19 billion by December 21. Sounds like they are strategically snatching up liquid assets amid the market hustle and bustle!
But wait, there’s more! Rumor has it that they might be under some pressure to meet dividend obligations on those preferred shares. And yes, the grapevine says they might have to consider selling off some of their Bitcoin treasure (valued over $50 billion, no less) if the market takes a nosedive. Yikes!
According to their filings, the main goal for this dollar stash is to cover dividend payments and interest on all that outstanding debt. In a market that can be as moody as a teenager, dumping a significant amount of Bitcoin to pay these dividends could send shockwaves through the market, especially when things get rocky. So, having a solid cash reserve? Smart move!