Strategy Completes $370M Bitcoin Acquisition in First Purchase Since Mid-June

Strategy Completes $370M Bitcoin Acquisition in First Purchase Since Mid-June

For the first time in a two-month period, Strategy expanded its BTC holdings, simultaneously building up cash reserves and executing buybacks of its STRC perpetual preferred stock.

The world's largest corporate holder of Bitcoin, Strategy, led by Michael Saylor, has completed its first acquisition in two months, purchasing 4,603 Bitcoin valued at $370 million.

At an average cost of $80,318 per Bitcoin, Strategy purchased 4,603 BTC, bringing the company's total cryptocurrency holdings to 845,050 BTC, which were accumulated at a collective cost of $63.3 billion with an average acquisition price of $75,413, based on a Monday filing submitted as an 8-k document to the Securities and Exchange Commission.

The cryptocurrency acquisition was financed through proceeds from the sale of 602 million in MSTR common stock. From these proceeds, the firm allocated $30 million toward bolstering its USD Cash holdings and deployed $151.8 million for the repurchase of STRC preferred stock.

During Monday's pre-market trading session, Nasdaq-listed MSTR shares climbed by less than 1%, recovering from a decline exceeding 7% recorded on Friday.

This transaction represents Strategy's initial corporate Bitcoin purchase since mid-June, the last occasion being when the firm bought 1,587 BTC for approximately $100 million.

Michael Saylor, Strategy's co-founder and executive chairman, hinted at the company's return to Bitcoin accumulation on Sunday, posting "We're Back" in an X post that garnered significant attention. Saylor has established a reputation for sharing enigmatic weekend hints ahead of formal disclosures regarding the company's significant treasury activities.

In Monday's pre-market trading, Strategy's perpetual preferred stock, STRC, increased by 0.44%, trading at $97.33, representing a discount of 2.67% relative to its designated $100 par value, according to data from Yahoo Finance.

One of Strategy's primary funding vehicles for its Bitcoin acquisition strategy is STRC. When STRC trades beneath par value, it constrains Strategy's capacity to generate capital through STRC offerings. This situation could potentially compel the company to raise its nominal dividend rate further to entice purchasers and maintain STRC's market price.

Strategy revealed a capital framework in its June 29 8-K filing that permits Bitcoin sales to finance dividend payments and raised the annual dividend rate on STRC preferred stock to 12%. The company reported selling 32 Bitcoin in early June, marking its first disclosed Bitcoin divestiture since conducting a tax-loss transaction in 2022.