Strategy buys Bitcoin again, adding 267 BTC to its corporate holdings while allocating significantly more capital to repurchasing its preferred shares.
Michael Saylor’s Strategy, the world’s largest publicly traded corporate Bitcoin holder, acquired $22.1 million worth of Bitcoin last week. However, the company spent nearly nine times that amount buying back STRC preferred stock.
According to a filing submitted to the US Securities and Exchange Commission (SEC) on Monday, Strategy purchased 267 BTC between October 12 and October 18 at an average price of $82,900 per coin.
As a result, the company’s total Bitcoin holdings increased to 848,517 BTC, reinforcing its position as the largest corporate holder of the cryptocurrency.
Strategy Expands STRC Buybacks to $3 Billion
Alongside its latest Bitcoin acquisition, Strategy repurchased approximately 1.94 million shares of its Stretch (STRC) preferred stock for $193.1 million.
Furthermore, the company raised its digital credit securities repurchase authorization from $2 billion to $3 billion.
The transactions highlight a growing trend in Strategy’s capital allocation, with preferred stock buybacks increasingly exceeding its Bitcoin investments.
Strategy financed its latest Bitcoin purchase primarily through approximately $22 million raised from selling 140,872 shares of its MSTR common stock.
Meanwhile, the company funded its STRC repurchases using existing cash reserves.
STRC Repurchases Significantly Outpace Bitcoin Investments
During the fourth quarter, Strategy has spent approximately $459.2 million repurchasing STRC shares, compared with just $72.3 million invested in acquiring 851 Bitcoin.
Consequently, the company has allocated more than six times as much capital to preferred stock buybacks as to additional Bitcoin purchases during the period.
STRC is a variable-rate preferred stock designed to provide investors with regular dividend payments.
Strategy has previously explained that it intends to repurchase STRC shares whenever they trade below their $100 stated value, aiming to support the security’s market price.
Additionally, the company disclosed a $4.83 billion US dollar reserve intended to cover preferred stock dividends and interest payments on its debt.
This reserve is separate from its reported $447.3 million in other US dollar cash holdings.
Michael Saylor Predicts Bitcoin Bull Market Return
Despite prioritizing STRC repurchases, Michael Saylor remains optimistic about Bitcoin’s long-term market outlook.
Speaking at ParaFi Investor Day on Saturday, Saylor suggested that the cryptocurrency could be entering another bullish phase.
“We’re moving back into a bull market,” he stated, pointing to Bitcoin’s recovery above its 200-day simple moving average.
The 200-day moving average is a widely monitored technical indicator that helps investors identify longer-term market trends.
Saylor acknowledged that restrictive trade policies, international political developments and monetary conditions have created challenges for Bitcoin.
Nevertheless, he identified increasing cryptocurrency adoption among traditional banks and the tokenization of conventional financial assets as important potential growth catalysts.
MSTR and STRC Shares Gain in Premarket Trading
Strategy’s latest financial developments coincided with a recovery in its share price ahead of Monday’s Nasdaq opening bell.
According to Yahoo Finance, MSTR shares gained more than 2.5% in premarket trading, following a decline of approximately 9.6% on Friday that left the stock at $138.83.
Meanwhile, STRC preferred shares advanced around 0.8% to $98.45 in premarket activity, recovering some of their previous session’s 1.8% decline.
The contrasting investment figures underscore Strategy’s increasing emphasis on managing its preferred stock obligations while continuing to accumulate Bitcoin.
Although its latest cryptocurrency purchase was relatively modest compared with the STRC repurchases, Strategy continues to maintain its long-term Bitcoin accumulation strategy.
