Strategy adds $300M reserve and buys 520 Bitcoin

• Strategy acquired 520 Bitcoin for US$34.9 million and increased its total holdings to 847,363 BTC.
• The company added US$300 million to its US dollar reserve, lifting the balance to US$1.4 billion.
• Both moves were funded through US$335.5 million in MSTR share sales under the company's at-the-market programme.

Strategy acquired 520 Bitcoin (CRYPTO:BTC) for US$34.9 million and increased its US dollar reserve by US$300 million, bringing total holdings to 847,363 BTC and reserve assets to US$1.4 billion.

The purchase follows continued use of Strategy's equity financing model, which has become widely adopted by other Bitcoin treasury companies seeking to expand cryptocurrency holdings.

“Strategy plans to continue replenishing the USD Reserve over time based on market conditions to support the credit quality of its Digital Credit securities,” said Strategy in its SEC filing.

The company funded both the Bitcoin purchase and reserve increase through US$335.5 million in proceeds raised from sales of its Class A common stock under its at-the-market programme.

Strategy said its cumulative Bitcoin purchases now total US$64.1 billion at an average acquisition cost of US$75,651 per Bitcoin, while Following the announcement the MSTR share price was down 3.46% at US$112.53 and STRC was down 0.46% at US$88.59.

The reserve increase came as STRC, Strategy's perpetual preferred stock designed to trade near US$100, fell below US$90 during recent trading sessions.

Bitcoin advocate Samson Mow said the structure contains a mechanism that halts new STRC issuance when the security trades below its reference price, which he said may help support demand through higher effective yields for buyers.

At the time of reporting, Bitcoin price was $64,111.99.