CryptoSlate
Strategy bought 1,665 Bitcoin for $142.7 million in the week ended Sept. 27, following a 950 BTC purchase for $75.7 million the week before. The consecutive weekly buys are its first since June and lifted its holdings to a record 847,666 BTC, acquired for about $63.9 billion at an average price of $75,437.
Why it matters
The two purchases reversed Strategy's negative Bitcoin accumulation for the quarter. The company had a net 1,666 BTC added in Q3 with three trading days remaining, and analyst Mark Harvey said it had repurchased all the Bitcoin sold during the quarter and added more. That would extend its run of quarters with net Bitcoin growth to 24.
The renewed accumulation is part of a broader capital allocation strategy. Strategy financed the latest Bitcoin purchase through its at-the-market common-stock program, selling about 1.47 million MSTR shares for $246.2 million in net proceeds. It also spent $151.7 million to repurchase about 1.53 million shares of its STRC preferred stock, drawing on stock-sale proceeds and cash.
Market impact
Strategy's Bitcoin holdings were valued at about $70.7 billion, with an unrealized gain of roughly $6.75 billion, or 10.6%, over its purchase cost. The company still reported a -3.7% Bitcoin yield year-to-date and a negative BTC Gain of 25,085 BTC, valued at about -$2.1 billion using its reporting prices.
STRC has recovered to about $99, near its $100 stated value, after trading as low as about $71 during Bitcoin's June selloff. Strategy has spent more than $1 billion on preferred-share repurchases under a $2 billion program. Investors will be watching whether Bitcoin purchases continue for a third consecutive week and whether the proposed shift to daily preferred dividends helps keep STRC near par.
Frequently asked questions
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How much Bitcoin did Strategy buy in its latest reported week?
Strategy acquired 1,665 BTC for $142.7 million in the week ended Sept. 27. It had bought 950 BTC for $75.7 million the previous week.
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How large are Strategy's Bitcoin holdings?
Strategy held a record 847,666 BTC, acquired for about $63.9 billion at an average price of $75,437.
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How did Strategy fund its latest Bitcoin purchase?
Strategy sold about 1.47 million MSTR shares through its at-the-market program, generating $246.2 million in net proceeds. The company used the program to finance the Bitcoin acquisition.
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What is Strategy doing to support STRC?
Strategy repurchased about 1.53 million STRC preferred shares for $151.7 million. STRC had recovered to about $99, near its $100 stated value.
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What are investors watching as the quarter closes?
Investors will be watching whether Strategy makes a third consecutive weekly Bitcoin purchase and whether repurchases and proposed daily dividends help keep STRC near its stated value.
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