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Strategy buys 267 bitcoin and spends $193 million buying back STRC preferred shares
Summary
Strategy bought 267 BTC for about $22.1 million at an average price of $82,900 between Oct. 12 and Oct. 18, bringing its holdings to 848,517 BTC, according to a Monday SEC filing reported by The Block and Cointelegraph.
In the same period the company repurchased about 1.94 million shares of its Stretch (STRC) preferred stock for about $193.1 million and raised its digital credit securities buyback authorization to $3 billion from $2 billion, both outlets said.
The bitcoin purchase was funded mainly by selling 140,872 MSTR common shares for about $22 million, while the STRC repurchases came from cash, The Block and Cointelegraph reported.
Cointelegraph said Strategy has spent $459.2 million on STRC buybacks so far in the fourth quarter, more than six times the $72.3 million it spent on 851 bitcoin over the same period.
Updates
- Update, : Oct. 19: Decrypt confirmed the 267 BTC buy and $193.1 million STRC buyback and added that $1.16 billion remains in the expanded repurchase program.
- Update, : Oct. 19: Bitcoin Magazine said this was Strategy’s third bitcoin purchase of October, bringing its October bitcoin spending to about $73 million.
Key facts
- The Block said Strategy’s holdings were bought for a total of about $64 billion at an average of $75,446 per bitcoin, equal to more than 4% of bitcoin’s total supply.
- Both outlets said Strategy reported a $4.83 billion USD Reserve and $447.3 million in USD Cash as of Oct. 18; The Block said $45.5 million of the reserve funded preferred stock dividends.
- Cointelegraph quoted Michael Saylor saying “We’re moving back into a bull market” at ParaFi Investor Day on Saturday, pointing to bitcoin’s recovery above its 200-day simple moving average.
- The Block said K33 analysts warned the preferred-stock financing model could ultimately cost Strategy bitcoin as STRC dividend obligations rise.
- Outlets differ on Friday’s MSTR close: The Block said $136.83 after an 11.3% weekly drop, while Cointelegraph said $138.83, down about 9.6% on the day.
- Decrypt said that after the buyback and the increase to $3 billion, $1.16 billion remained available in the digital credit securities repurchase program as of Oct. 18, and a separate MSTR common stock buyback program has $1 billion left.
- Decrypt said Strategy’s 848,517 BTC were acquired for $64.02 billion in total, an average of $75,446 per coin.
- Bitcoin Magazine said Strategy has spent about $73 million on bitcoin so far in October across three purchases, including $22 million on 250 BTC the week before.
- Bitcoin Magazine said MSTR traded nearly 2% higher Monday morning at about $139, down 17% over the past month and 11% year to date.