Strategy (formerly MicroStrategy) acquired 1,665 Bitcoin on Sept. 28 for $142.7 million at $85,681 per token, completing back-to-back weekly purchases for the first time since June and lifting total holdings to a record 847,666 BTC.
The prior week, Strategy purchased 950 BTC for $75.7 million. The two acquisitions reversed a quarterly decline triggered by earlier Bitcoin sales and extended the company’s streak of consecutive quarters with net Bitcoin growth to 24, according to Bitcoin analyst Mark Harvey.
“Strategy has now repurchased all the Bitcoin it sold during the quarter and added more, extending its streak of consecutive quarters with net Bitcoin growth to 24,” Mark Harvey said.
Strategy financed the acquisitions through its at-the-market common-stock program, selling 1.47 million MSTR shares last week for $246.2 million in net proceeds. The company retains $18.84 billion in remaining issuance capacity under the program.
Preferred Stock Support Strategy
Strategy allocated a portion of capital raised to repurchasing its STRC preferred stock. The company repurchased 1.53 million STRC shares for $151.7 million last week, funded by $103.5 million from MSTR share sales and $48.1 million from its USD cash balance. Strategy has spent more than $1 billion repurchasing STRC under a $2 billion program.
STRC repurchases represented 18.9% of total STRC trading volume last week and 22.8% the prior week. The preferred stock currently trades near $99, close to its $100 stated value after months of trading below par.
Strategy increased STRC dividend payment frequency from monthly to twice monthly in June. The company is now proposing to change dividend payments to daily across four US-listed preferred securities: STRC, STRF, STRK, and STRD. A special shareholder meeting is scheduled for Oct. 28 to vote on the daily dividend proposal. The record date for the first daily STRC dividend payment is Nov. 1, with an expected initial payment on Nov. 2.
Holdings and Valuation
Strategy’s aggregate Bitcoin purchase cost stands at $63.9 billion, with current holdings valued at $70.7 billion, representing an unrealized gain of $6.75 billion or 10.6%. Year-to-date, Strategy has acquired 175,166 BTC.
As of Sept. 27, Strategy maintained $1 billion in general-purpose cash and a $5 billion USD Reserve balance. The company also allocated $22.1 million for preferred-stock dividend obligations during the period.
MSTR analyst Zaid had expected Strategy to deploy $250 million to $300 million on Bitcoin during the week, but the company directed remaining capital toward STRC repurchases instead.
