Strategy Acquires $22M Worth of Bitcoin While Executing $193M STRC Share Buyback
Following its most recent acquisition, Strategy's Bitcoin position grew to 848,517 BTC, as the firm disclosed $4.83 billion in reserves alongside $447.3 million held in additional cash assets.
Strategy, led by Michael Saylor and recognized as the largest publicly listed corporate Bitcoin holder globally, acquired $22.1 million worth of the cryptocurrency during the past week, while simultaneously allocating nearly nine times that amount toward repurchasing shares of its STRC preferred stock.
The company acquired 267 Bitcoin units at an average cost of $82,900 per coin during the period spanning October 12 through October 16, pushing its total Bitcoin position to 848,517 BTC, representing a cumulative purchase value of $64.02 billion, based on a filing submitted Monday to the US Securities and Exchange Commission (SEC).
Additionally, Strategy executed a buyback of 1.94 million shares of its Stretch (STRC) preferred stock, spending $193.1 million on the transaction. This recent buyback activity comes on the heels of Strategy's purchase of 250 Bitcoin valued at $21.5 million in the week concluding October 9, during which the company also allocated $192.4 million to STRC share repurchases.
According to the company's disclosure, its board of directors has expanded the authorization for its digital credit securities repurchase program from $2 billion to $3 billion, with $1.16 billion remaining available for use as of Sunday.
The company financed its Bitcoin acquisitions predominantly through proceeds totaling $22 million generated from the sale of 140,872 shares of its common stock, MSTR. The STRC repurchases were funded using cash on hand. Strategy disclosed a US dollar reserve of $4.83 billion earmarked specifically for preferred stock dividend distributions and debt interest obligations, in addition to maintaining $447.3 million in separate cash reserves.
Prior to Monday's opening bell on Nasdaq, MSTR shares demonstrated upward momentum of more than 2.5% during premarket trading activity. The stock had finished Friday's trading session with a decline of approximately 9.6%, closing at $138.83 per share.