Journal du Coin2 hours agoBusiness2 min read

Strategy buys back its preferred shares and buys bitcoin, the price remains stable

Quick Look

Strategy spent $176.3 million to repurchase its preferred shares and $28.7 million to buy 334 bitcoins between September 28 and October 4, bringing its stock to 848,000 BTC.
Bitcoin remains around $85,800 despite these movements.
Strive and Metaplanet are also increasing their reserves, while the Fed will release its minutes and TOKEN2049 will be held in Singapore.

AI-generated summary

Why It Matters

Strategy, formerly MicroStrategy, is known for its strategy of massive bitcoin accumulation via its corporate treasury. It finances these purchases by issuing debt and preferred shares (STRC). Bitcoin price recently rebounded above $85,000 after a period of consolidation.

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The largest holder of bitcoin, in retreat. Strategy spent $176.3 million on the repurchase of its own preferred shares between September 28 and October 4, and $28.7 million on the purchase of bitcoins.

The course did not suffer. Bitcoin went back above $85,000 and is trading around $85,800 this Tuesday, October 6.

Strategy and bitcoin: 334 BTC purchased, $176 million repurchased

According to the Oct. 5 8-K filing, Strategy purchased 334 bitcoins between Oct. 1 and Oct. 4 for $28.7 million, averaging $85,838.80 per unit. She didn't buy anything from September 28 to 30. Its stock reaches 848,000 bitcoins, for an average cost price of $75,440.70.

Over the same extended window, from September 28 to October 4, the company repurchased $176.3 million of STRC, including $102.6 million from September 28 to 30 and $73.7 million from October 1 to 4. STRC is its preferred share, a security halfway between a stock and a bond which remunerates its holders with a dividend. The ratio to bitcoin purchases is about six to one, even though they only started on October 1.

The preliminary unrealized gain for the third quarter reached $20.91 billion, before $1.88 billion in deferred taxes. Michael Saylor posted “More orange than ever” on the day of the announcement.

Strive and Metaplanet: who buys at $85,000?

Relays exist at other treasuries. Strive added 2,000 bitcoins for around $169 million, its largest purchase since June, and now holds 29,462 BTC, putting it close to MARA. Metaplanet held 44,000 bitcoins as of September 30, after selling 10,000 and then buying back 11,000 to prove it could sell when needed, a net 1,000 for the quarter. She thus passes in front of Twenty One.

Fed minutes and TOKEN2049: the calendar of the week

On Wednesday, October 7, the Fed publishes the minutes of its September 16 meeting, which raised rates by 25 basis points to 3.75-4%, recalls CNBC. Thursday, unemployment claims, then Friday consumer confidence in Michigan. Meanwhile, TOKEN2049 brings the industry together in Singapore on October 7-8, with the head of Polymarket on show.

What to Watch

AI outlook — possibilities, not facts

Strategy will continue to accumulate bitcoin in the following quarter
Likely · Within months
Bitcoin price will remain in the range of $80,000 to $90,000 in the short term
Possible · Within weeks

Open Questions

What is the exact impact of the preferred stock repurchase on Strategy's capital structure?
Does Strategy plan to continue to finance its bitcoin purchases through STRC issuances?
How do other public treasuries like Strive and Metaplanet finance their bitcoin purchases?