Key highlights:
- Strategy repurchased $139.3 million worth of STRC shares without changing its Bitcoin holdings
- The latest buyback brings Strategy’s recent STRC repurchases to over $300 million, as it prioritizes capital management
- Strategy is using cash reserves to support STRC while keeping its massive Bitcoin treasury intact
Strategy has once again left its Bitcoin holdings untouched, instead spending $139.3 million to repurchase its STRC preferred shares. The latest move extends the company’s recent focus on strengthening its capital structure while its massive Bitcoin position remains unchanged at 845,050 BTC.
Strategy directs cash toward STRC repurchase
According to an official disclosure, Strategy repurchased 1.42 million STRC shares between September 8 and September 13 using its USD Cash reserve. According to a Monday filing, the company did not buy or sell Bitcoin during the period.
The latest STRC buyback comes less than a week after Strategy doubled the authorization for its Digital Credit Securities Repurchase Program from $1 billion to $2 billion.
Strategy now has $$1.19 billion of capacity remaining under the expanded program. Strategy also maintains a separate $1 billion authorization to repurchase its MSTR common stock, although it has not used that program.
At press time, Strategy’s USD Cash balance sits at $1.3 billion while its USD reserve stands at $5.1 billion. The Bitcoin treasury company uses the reserve to support preferred-stock dividends and interest payments.
The latest buyback follows a $176.3 million STRC repurchase announced on September 8. Strategy bought 1.81 million STRC shares during the previous reporting period, bringing its recent spending on the preferred stock to more than $300 million.
STRC price is trading at $98.75, close to its $100 par value. Meanwhile, MSTR price is up by nearly 4% following the disclosures in a strong start to the week.
Bitcoin stack remains at 845,050 BTC
Despite the pause in purchases, Strategy has not reduced its Bitcoin treasury. Its 845,050 BTC stash was acquired for approximately $63.7 billion at an average purchase price of $75,412 per Bitcoin, including fees and expenses.
The position represents over 4% of Bitcoin’s 21 million maximum supply, making Strategy the largest Bitcoin corporate holding. Strategy’s latest filing marks another week in which the company’s Bitcoin accumulation strategy took a back seat to capital management.
One month ago, Strategy confirmed that it had paused its aggressive BTC accumulation, while revealing plans to sell Bitcoins to meet its financial obligations. The company subsequently stopped adding to its Bitcoin position while continuing to buy back STRC.
However, in late August, Strategy made its first Bitcoin buy in 10 weeks, splurging $369 million to purchase 4,603 BTC. The purchase ended Strategy’s longest Bitcoin buying drought of the year after a streak of heavy BTC selling by the Michael Saylor-founded company.