TLDR
- Strategy (MSTR) bought 267 Bitcoin for $22.1 million between Oct. 12 and Oct. 18, bringing its total to 848,517 BTC.
- The company repurchased 1.94 million STRC preferred shares for $193.1 million.
- Its digital credit securities buyback authorization rose to $3 billion from $2 billion.
- MSTR closed Friday down about 10% at $138.83 and was up more than 2.5% premarket Monday.
- MSCI plans new rules that could lead to Strategy being dropped from its indexes.
Strategy (MSTR) closed Friday at $138.83, down about 9.6% on the day. Ahead of Monday’s open, the stock was trading more than 2.5% higher in premarket activity, according to Yahoo Finance.
The company added 267 Bitcoin last week for $22.1 million, at an average price of $82,900 per coin. A Monday filing with the SEC showed total holdings now stand at 848,517 BTC.
Those coins cost about $64 billion in total, at an average of $75,446 each. That equals more than 4% of Bitcoin’s total supply.
The purchase was funded mostly by selling 140,872 MSTR common shares for about $22 million. Strategy used its USD cash for the remaining $0.1 million.
Preferred stock buybacks outpace Bitcoin buying
Strategy spent far more on its preferred stock than on Bitcoin. It repurchased 1.94 million STRC shares for $193.1 million, nearly nine times the Bitcoin spend.
STRC shares rose about 0.8% premarket to $98.45. They fell 1.8% on Friday. Strategy has said it wants to buy back shares trading below their $100 stated value.
So far in the fourth quarter, the firm has spent $459.2 million on STRC buybacks. That is more than six times the $72.3 million it spent on 851 Bitcoin in the same period.
The board also raised the digital credit securities repurchase authorization to $3 billion. The previous limit was $2 billion.
Strategy reported a USD Reserve of $4.83 billion as of Oct. 18. It also holds $447.3 million in separate USD cash. The company used $45.5 million from the reserve to pay preferred dividends last week.
About $18.79 billion worth of MSTR stock remains available under its at-the-market program. That is the pool the company draws on when it sells common shares.
Saylor sees a bull market
Michael Saylor spoke at ParaFi Investor Day on Saturday. “We’re moving back into a bull market,” he said.
He pointed to Bitcoin’s recovery above its 200-day simple moving average. He also named trade, foreign and monetary policies as headwinds, and bank adoption and tokenization as possible drivers.
Saylor also described a “perfected” digital money idea. It is a dollar-pegged, Bitcoin-backed stablecoin that he said could offer yields of 6% to 8%.
On Sunday, he posted a purchase tracker chart with the line “We found room for more orange.” It hinted at Monday’s announcement.
Earlier last week, MSCI said it will adopt new rules that could lead to Strategy’s exclusion from its indexes. Metaplanet and Sharplink could also be affected.
Analysts at K33 warned that the preferred stock model could end up costing Strategy Bitcoin because of rising STRC dividend obligations. Research head Vetle Lunde argued common stock issuance is a more efficient way to fund purchases.
Strategy remains the largest of 198 public companies holding Bitcoin. Metaplanet follows with 44,000 BTC, then Twenty One with 43,514 BTC, Strive with 35,595 BTC and MARA with 35,577 BTC.
As of Monday’s premarket, MSTR was trading above Friday’s $138.83 close, and STRC sat at $98.45.
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