TheBlock
Strategy made no Bitcoin purchases or sales between Oct. 19 and Oct. 25, ending a five-week acquisition streak, according to an SEC filing. Its holdings remain at 848,517 BTC, worth about $67.9 billion and equal to more than 4% of Bitcoin's total supply. Strategy paid an average of $75,446 per bitcoin, bringing the total cost to about $64 billion, including fees and expenses.
Instead of adding to its treasury, the company repurchased 2.07 million STRC preferred shares for approximately $204.9 million using its USD Cash reserve. As of Oct. 25, Strategy reported $4.83 billion in USD Reserve and $242.4 million in USD Cash.
Why it matters
The pause comes as MSCI considers rules targeting non-operating companies, a move that could ultimately exclude Strategy's MSTR stock from its indexes. Losing index inclusion could reduce demand from index investors and make it harder for the company to raise capital for additional Bitcoin purchases.
That financing model has made Strategy the largest public-company Bitcoin holder and the dominant player among roughly 200 public companies using a Bitcoin acquisition strategy. Metaplanet, Twenty One, Strive and MARA rank among the next-largest holders, with 44,000 BTC, 43,514 BTC, 43,000 BTC and 35,577 BTC, respectively.
Market impact
Strategy's stock fell 6.9% last week to close at $146.02, while Bitcoin declined 1.1% and briefly traded below $80,000. The filing shows the treasury remained unchanged while capital was directed toward STRC, making MSCI's index decision an important variable for Strategy's future funding capacity and BTC accumulation pace.
Frequently asked questions
-
How much Bitcoin does Strategy hold after pausing purchases?
Strategy holds 848,517 BTC, worth about $67.9 billion and equal to more than 4% of Bitcoin's total supply.
-
Why did Strategy pause its Bitcoin purchases?
The filing shows no Bitcoin purchases or sales between Oct. 19 and Oct. 25. During that period, Strategy used about $204.9 million to repurchase STRC preferred shares.
-
What did Strategy do with its capital instead of buying BTC?
Strategy repurchased 2.07 million STRC preferred shares for approximately $204.9 million using its USD Cash reserve.
-
How could MSCI rules affect Strategy's Bitcoin strategy?
Potential exclusion from MSCI indexes could reduce demand from index investors and make it harder for Strategy to raise capital for future Bitcoin purchases.
-
How did MSTR and Bitcoin perform during the period?
MSTR fell 6.9% last week to close at $146.02. Bitcoin declined 1.1% and briefly traded below $80,000.
CoinTelegraph
CoinDesk
WuBlockchain
Lookonchain
Crypto News