Strategy Raises Preferred Buyback Authority To $3 Billion, Buys 267 More Bitcoin
The company repurchased 1,938,780 STRC shares for $193.1 million from cash, not its dividend reserve, an 8-K shows.
Strategy's board raised its repurchase program for preferred stock and other digital credit securities to $3.0 billion from $2.0 billion, according to an 8-K filed Monday. The same filing shows the company bought 267 bitcoin for $22.1 million during the week of October 12 to October 18.
The buyback increase
The new $3.0 billion ceiling includes commissions, fees and expenses, and counts repurchases already made under the program. After the increase, $1.16 billion of purchase authority remained as of October 18.
During the week, Strategy repurchased 1,938,780 shares of its STRC preferred stock for an aggregate $193.1 million. It paid for them with USD Cash, the pool management keeps for broader bitcoin-treasury purposes. No other preferred series was repurchased, and no MSTR common stock was bought back; $1.0 billion of authority remains under the separate MSTR repurchase program.
Bitcoin purchases and how they were paid for
The 267 bitcoin cost an average of $82,900 each, inclusive of fees. Holdings now stand at 848,517 bitcoin, acquired for an aggregate $64.02 billion, or an average of $75,446.
The purchases were funded by $22.0 million in net proceeds from selling 140,872 MSTR common shares under the at-the-market program, plus $0.1 million of USD Cash. That program has $18,785.6 million still available for sale. No preferred shares were sold during the week.
Reserve and cash balances
The USD Reserve, which is meant to cover preferred dividends and interest on debt, paid out $45.5 million for preferred dividends during the week. It held $4.83 billion on October 18, while USD Cash was $447.3 million.
The largest unused sales capacity among the preferred series sits in STRC, at $17,510.8 million, according to the filing. STRF has $1,619.3 million, STRK $2,100.0 million and STRD $4,014.8 million available.
MSTR closed at $136.83 on Friday, down 9.56%.
The preferred buybacks were paid from USD Cash, leaving the dividend reserve at $4.83 billion after its $45.5 million outlay.
Sources
- 8-K Filing — Strategy Inc (MSTR) — SEC EDGAR
