Strategy Spent $192.4 Million Retiring STRC Preferred Shares, Versus $21.5 Million On 250 Bitcoin
The company sold no preferred stock in the week to October 11 and funded its bitcoin buy mostly with common-stock sales.
Strategy repurchased 1,932,145 shares of its STRC preferred stock for an aggregate $192.4 million between October 5 and October 11, according to an 8-K filed Tuesday. In the same week it bought only 250 bitcoin for $21.5 million.
What the 8-K and press release say
The press release, dated Monday, October 12, covers the week of October 5 to October 11. Strategy sold no STRF, STRC, STRK or STRD preferred stock under its at-the-market program in that period, and repurchased none of those other series or any MSTR common stock.
The bitcoin purchase came to an average of $86,194 per coin, including fees and expenses. That lifts holdings to 848,250 BTC as of October 11, bought at an aggregate $64.00 billion, or $75,444 on average.
Funding came from selling 125,183 MSTR common shares for $21.0 million in net proceeds, plus $0.5 million of what the company calls USD Cash.
What it changes
Money went mainly toward retiring preferred stock rather than toward bitcoin. After the week's buyback, $354.8 million of purchase price remains available under the company's repurchase program for preferred stock. A separate MSTR common-stock repurchase program has $1.0 billion remaining.
Strategy's USD Reserve, which is meant to cover preferred dividends and interest on its debt, stood at $4.88 billion on October 11. USD Cash, which management keeps for broader uses including buying bitcoin, was $640.5 million.
The at-the-market program still has room: $17,510.8 million available for STRC and $18,807.6 million for MSTR common stock.
What to watch
The next weekly update will show whether the STRC buybacks continue against the remaining $354.8 million. MSTR shares closed at $152.68 on Monday and were indicated at $154.75 in Tuesday pre-market trading.
The remaining $354.8 million on the preferred buyback program sets the ceiling for any further STRC repurchases under it.
Sources
- 8-K Filing — Strategy Inc (MSTR) — SEC EDGAR
- Exhibit mstr-ex99_1.htm — Strategy Inc 8-K exhibit — SEC EDGAR
- Strategy Acquires 250 BTC and Repurchases $192 Million of STRC – Company Announcement - FT.com — Financial Times
- Strategy Adds 250 Bitcoin: Can MSTR Break Through $160? — benzinga.com
- 'There’s always room for more orange': Michael Saylor's Strategy scoops up another 250 bitcoin for $21.5 million as holdings reach 848,250 BTC — theblock.co
- Strategy buys $21 million worth of Bitcoin as corporate crypto buying shows signs of revival — fortune.com
- Strategy Scoops Up $21.5M in Bitcoin, Buys Back $192M in STRC - Decrypt — decrypt.co
