Strategy buys 1,665 BTC for $142.7m, lifting holdings to record 847,666
Strategy added 1,665 Bitcoin in the week to 27 September, taking its stash to a record 847,666 BTC, while also repurchasing $151.7m of its STRC preferred stock.
Key points
- Strategy bought 1,665 BTC for $142.7m between 21 and 27 September at an average price of $85,681 per coin.
- Total holdings now stand at 847,666 BTC, acquired for $63.95bn at an average of $75,437 per Bitcoin.
- The purchase was funded by selling 1.47 million MSTR shares through its at-the-market programme, raising $246.2m in net proceeds.
- Strategy also repurchased 1.53 million STRC preferred shares for $151.7m, with $723.5m left under its repurchase programme.
- The company reported $6.02bn in USD assets as of 27 September, split between a $5.02bn USD Reserve and $1bn of USD Cash.
Strategy has bought another 1,665 Bitcoin for $142.7m, lifting its holdings to a record 847,666 BTC, Decrypt reports. The purchase took place between 21 and 27 September at an average price of $85,681 per coin, according to a Monday filing with the Securities and Exchange Commission.
The company's total stash was acquired for $63.95bn at an average price of $75,437 per Bitcoin. The new total edges past its previous record of 847,363 BTC, reported on 22 June, per BitcoinTreasuries. Strategy then sold Bitcoin during the summer before resuming purchases in August.
The latest buy was funded with proceeds from sales of MSTR common stock through the company's at-the-market offering programme. Strategy sold 1.47 million MSTR shares during the week, generating $246.2m in net proceeds. Of that, $142.7m went towards Bitcoin and $103.5m was used to repurchase STRC preferred stock.
Record Bitcoin stash
Alongside the Bitcoin purchase, Strategy repurchased 1.53 million shares of its Variable Rate Series A Perpetual Stretch Preferred Stock, known by its ticker STRC, for $151.7m. The company has now spent hundreds of millions of dollars buying back STRC as it seeks to take advantage of the preferred stock trading below its stated amount. The filing says $723.5m remains available under its digital credit securities repurchase programme.
Strategy has previously described STRC repurchases as part of its broader capital-allocation strategy. Last week, the firm proposed daily dividend accrual on its preferred stock, including STRF, STRC, SREK and STRD, in a bid to dampen volatility.
The company also reported $6.02bn in USD assets as of 27 September. That figure consists of a $5.02bn USD Reserve and $1bn of USD Cash, according to the 8-K. The USD Reserve is a dedicated dollar fund maintained for dividends on its preferred stock and interest on its debt, while USD Cash is a separate pot established last month that can be used for Bitcoin purchases, increasing the reserve and other capital-management purposes.
Funding the purchase
During the week, Strategy used $48.1m of USD Cash to fund STRC repurchases and $22.1m from its USD Reserve to pay preferred-stock dividends. The company has previously said its capital framework allows it to sell up to $1.25bn worth of Bitcoin to fund its USD Reserve, preferred-stock dividends and interest expenses, as well as repurchases of MSTR or its preferred securities. For now, the latest weekly disclosure shows Strategy buying rather than selling Bitcoin for a second week.