Strategy Pays $204.9 Million To Retire Its Own STRC Preferred Shares, Buys No Bitcoin
The bitcoin treasury company funded the week's buyback entirely from cash, leaving its coin count at about 848,517.
Strategy, which holds bitcoin as its main treasury asset and also sells enterprise analytics software, repurchased 2,068,459 shares of its variable-rate STRC preferred stock for $204.9 million between October 19 and October 25, according to an 8-K filed Monday. It bought no bitcoin in the same stretch.
Paid from cash, not stock sales
Strategy said it used $204.9 million of what it calls USD Cash to fund the STRC repurchases. It sold no shares under its at-the-market program, the channel it normally uses to raise money for purchases.
USD Cash is the pot management keeps for broader bitcoin-treasury purposes, which can include buying coins or building up the dollar reserve. It stood at $242.4 million on October 25.
A separate USD Reserve held $4.83 billion on that date. That reserve is meant to cover dividends on the preferred stock and interest on the company's debt.
Bitcoin stack unchanged
Strategy neither bought nor sold bitcoin during the week. As of October 25 it held about 848,517 bitcoin, acquired for an aggregate $64.02 billion, or roughly $75,446 per coin including fees and expenses.
The company funds those purchases by issuing Class A common stock and several classes of preferred stock, which it describes as digital credit. STRC is one of them, alongside STRF, STRK and STRD.
Room left to buy back more
No shares of the other preferred series or of MSTR common stock were repurchased last week. Strategy has $956.8 million of purchase authority left under its preferred-stock repurchase program and $1.0 billion under its MSTR common stock program.
Seeking Alpha reported that MSTR shares rose for a second straight session, climbing 8%.
The next weekly update will show whether Strategy taps USD Cash again for STRC repurchases against the $956.8 million of preferred authority that remains.
Sources
- 8-K Filing — Strategy Inc (MSTR) — SEC EDGAR
- Strategy rises for second straight session, climbing 8% (MSTR:NASDAQ) | Seeking Alpha — seekingalpha.com
