Strategy Continues Bitcoin Buying With 334 BTC Buy, Repurchases $176M of STRC

Strategy bought more Bitcoin last week while also repurchasing its preferred shares. According to an SEC filing, the company spent $28.7 million for the crypto and about $176.3 million to buy back STRC stock.

A small purchase lifts Strategy’s holdings to 848,000 $BTC

The Michael Saylor firm bought 334 $BTC between Oct. 1 and Oct. 4 at an average price of about $85,838 per coin. The purchase moved its total from 847,666 $BTC to 848,000 $BTC. The company has now spent about $63.97 billion on Bitcoin, at an average cost of about $75,440 per coin.

This was the third week in a row that Strategy bought Bitcoin. The company bought 1,665 $BTC the week before, and the new buy was one of its smaller ones this year. Its purchases restarted recently after a long pause, during which it sold some of its holdings.

At the current price of Bitcoin, the holdings are worth about $72.9 billion. That is an unrealized gain of about $9 billion.

MSTR shares gained about 2.7% in premarket trading after the news was released. The stock has risen about 30% over the past month and is also back up more than 3% for the year.

Preferred stock buybacks take most of the cash

Strategy spent much more on STRC than on Bitcoin. STRC is a preferred stock that pays investors a 12% annual dividend. The company bought back about 1.77 million shares last week. The filing shows $102.6 million was spent between Sept. 28 and Sept. 30, and then $73.7 million for 740,634 shares between Oct. 1 and Oct. 4.

A huge chunk of the capital came from the USD Cash pool. The firm has leaned on MSTR share sales to fund Bitcoin when STRC traded below its $100 par value. The stock fell to about $75 earlier but has since recovered to around $99.5.

Last week, Strategy said it would keep STRC's 12% rate until the stock trades steadily near its $100 issue price.

The new filing also showed that the firm made a $20.91 billion gain on its digital assets in the third quarter. Its Bitcoin had a gain of about $70.82 billion on Sept. 30. Previously in June, the coins were worth less than the company paid for them. The rebound allowed the firm to reverse a $4.12 billion tax asset linked to that earlier loss.

The company currently holds a $4.88 billion USD Reserve, which is set aside for dividends and interest. It also has $833.4 million in USD Cash.

Strive made a bigger purchase

Strive (ASST), another Bitcoin treasury firm, reported a larger Bitcoin purchase on the same day. It bought 2,000 $BTC worth about $169 million between Sept. 28 and Oct. 2.

That is six times the size of Strategy's buy, bringing its total holdings to 29,462 $BTC. Chief Executive Matt Cole said 61.5% of the capital used came from SATA, Strive's preferred stock.