TheBlock
Strategy (MSTR) bought another 267 BTC for approximately $22.1 million at an average price of $82,900 per bitcoin between Oct. 12 and Oct. 18, according to a Monday SEC filing. That takes total holdings to 848,517 BTC, acquired for a cumulative $64 billion at an average of $75,446 per coin, equivalent to more than 4% of bitcoin's total supply. The purchase was funded through at-the-market sales of 140,872 MSTR Class A shares for roughly $22 million, with $18.79 billion still available under that ATM program.
Why it matters
Co-founder and executive chairman Michael Saylor used ParaFi Investor Day to outline his vision for "perfected" digital money: a dollar-pegged, bitcoin-backed stablecoin offering 6% to 8% yields, framed as the next step for digital capital and digital credit products. The board also approved an increase in the aggregate purchase price authorized under its digital credit securities repurchase program from $2 billion to $3 billion. Strategy repurchased 1,938,780 STRC preferred shares for around $193.1 million and spent $45.5 million of its USD Reserve on preferred dividends, leaving USD Reserve and USD Cash balances at $4.83 billion and $447.3 million as of Oct. 18.
Market impact
The headwinds are stacking up. MSCI's new index rules could exclude Strategy alongside Metaplanet and Sharplink for being "non-operating" companies, while K33's head of research Vetle Lunde warns the preferred stock financing model's rising dividend obligations may ultimately cost the firm bitcoin, arguing common stock issuance is a more efficient funding route. MSTR fell 11.3% last week to close Friday at $136.83 as bitcoin declined 2.6%. Strategy remains the largest of 198 public companies holding bitcoin, well ahead of Metaplanet's 44,000 BTC and Twenty One's 43,514 BTC.
Frequently asked questions
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How much bitcoin does Strategy hold after the latest purchase?
848,517 BTC, acquired for a total of $64 billion at an average price of $75,446 per bitcoin, equivalent to more than 4% of bitcoin's total supply.
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How did Strategy fund its 267 BTC purchase?
Through at-the-market sales of 140,872 MSTR Class A shares for roughly $22 million, with $0.1 million covered by USD Cash. $18.79 billion remains available under the ATM program.
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What is Michael Saylor's bitcoin-backed stablecoin proposal?
At ParaFi Investor Day he outlined a "perfected" dollar-pegged, bitcoin-backed stablecoin that could offer yields of 6% to 8%, framing it as the next step for digital capital and digital credit products.
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Why could Strategy be removed from MSCI indexes?
MSCI will adopt new rules against "non-operating" companies, and Strategy, alongside treasury firms Metaplanet and Sharplink, could fall foul of them.
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What risk do analysts see in Strategy's preferred stock model?
K33's Vetle Lunde argues rising STRC dividend obligations may ultimately cost Strategy bitcoin, with common stock issuance a more efficient way to fund future purchases.
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