Strategy Buys 250 Bitcoin and Repurchases $192 Million of STRC
Strategy purchased 250 Bitcoin for $21.5 million last week while spending nearly nine times more buying back its STRC preferred stock.
The company acquired the Bitcoin between October 5 and October 11 at an average price of $86,194 per BTC, including fees.
The purchase increased Strategy’s total Bitcoin holdings to 848,250 BTC, acquired for approximately $64 billion at an average purchase price of $75,444 per Bitcoin.
Strategy Spends $192 Million Buying Back STRC
While Strategy continued accumulating Bitcoin, the much larger transaction involved its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC).
During the week, Strategy:
- Purchased 250 BTC for $21.5 million
- Repurchased 1,932,145 STRC shares
- Spent approximately $192.4 million on STRC buybacks
- Increased its Bitcoin holdings to 848,250 BTC
Strategy funded most of the Bitcoin purchase by selling 125,183 shares of MSTR common stock for approximately $21 million, with the remainder coming from cash.
The STRC repurchases are notable because Strategy has been buying back the preferred stock while it trades below its $100 stated amount. Repurchasing STRC reduces the number of preferred shares outstanding and eliminates the future dividend obligations associated with those shares.
Bitcoin Purchases Continue to Shrink
Strategy is still buying Bitcoin, but its weekly purchases have declined significantly.
The company purchased 1,665 BTC in late September, followed by 334 BTC in early October and just 250 BTC during the latest week.
Strategy had approximately $4.88 billion in its U.S. dollar reserve and $640.5 million in cash as of October 11.
For now, Strategy appears to be balancing three priorities: accumulating additional Bitcoin, preserving MSTR shareholder value and repurchasing STRC when the preferred stock trades at an attractive discount.
