Strategy buys $22M in Bitcoin, repurchases $193M in STRC
Company increases digital credit securities repurchase program authorization to $3 billion
Quick Look
- MicroStrategy acquired 267 Bitcoin for $22.1 million and repurchased $193.1 million in STRC preferred stock.
- The company also raised its digital credit securities repurchase authorization to $3 billion, funded by common stock sales and existing cash reserves.
AI-generated summary
Why It Matters
MicroStrategy is the world's largest publicly traded corporate holder of Bitcoin. The company frequently utilizes common stock sales to fund its digital asset acquisitions.
MicroStrategy, the world’s largest publicly traded corporate Bitcoin holder, bought $22.1 million of the crypto last week while spending nearly nine times as much repurchasing its STRC preferred stock.
Strategy bought 267 Bitcoin at an average price of $82,900 between Oct. 12 and Oct. 16, bringing its holdings to 848,517 BTC, worth $64.02 billion at purchase cost, according to a Monday filing with the US Securities and Exchange Commission (SEC).
Strategy also bought back 1.94 million shares of its Stretch (STRC) preferred stock for $193.1 million. The latest purchase follows Strategy’s acquisition of 250 Bitcoin for $21.5 million during the week ending Oct. 9, when it also spent $192.4 million repurchasing STRC shares.
The company said its board increased the authorization for its digital credit securities repurchase program to $3 billion from $2 billion, leaving $1.16 billion available as of Sunday.
The company funded its BTC purchases primarily through $22 million in proceeds from selling 140,872 shares of its common stock, MSTR. It used existing cash to fund the STRC repurchases. Strategy reported a $4.83 billion US dollar reserve dedicated to preferred stock dividends and debt interest payments, alongside $447.3 million in separate cash holdings.
Ahead of Monday’s Nasdaq open, MSTR shares were trading more than 2.5% higher in premarket activity. The shares closed Friday down about 9.6%, at $138.83 apiece.
What to Watch
AI outlook — possibilities, not facts
Continued utilization of the $1.16 billion remaining in the repurchase program.
Likely · Within months
Open Questions
- Will the company continue the current pace of BTC accumulation?
- What is the long-term impact of the increased buyback authorization?
