Strategy buys 250 Bitcoin for $21.5 million, lifting holdings to 848,250 BTC
In brief
- Strategy bought 250 BTC for $21.5 million last week, per its website announcement.
- Holdings reached 848,250 BTC as purchases declined for a second consecutive week.
- Common stock sales funded $21 million; existing cash covered the remaining $500,000.
- Strategy reported a $4.88 billion US Reserve and $640.5 million in USD Cash.
- SEC filing still pending; the SEC was closed Monday for Columbus Day.
Stock sales covered most of it
Strategy funded $21 million of the purchase through common stock sales and paid the remaining $500,000 with existing cash, per the announcement.
The company also spent $192.4 million on its STRC preferred stock during the week, Cointelegraph reported. That's up from $176.3 million the week before.
Strategy said the $4.88 billion US Reserve is there to support preferred stock dividends and debt interest payments. It isn't the same pot as the company's USD Cash balance, which stood at $640.5 million as of Sunday (both figures came from the same announcement).
Announced on the website, not with the SEC
Strategy typically reports its Bitcoin purchases in filings with the US Securities and Exchange Commission. That didn't happen Monday. The SEC was closed for the Columbus Day holiday, so the figures here come from the company's own website announcement (as reported by Cointelegraph) rather than a filing, and one hasn't been made yet.
Saylor had already hinted at the buy. In a Sunday post before the announcement, Strategy's founder and executive chair signaled another Bitcoin purchase.
“There’s always room for more orange.”
MSTR, Strategy's Nasdaq-traded common stock, was up less than 1% ahead of Monday's open, according to Yahoo Finance data cited by Cointelegraph. The preferred stock was set to open at $99.68 a share.
A slower pace of accumulation
Strategy's Bitcoin accumulation has slowed in recent months, according to Cointelegraph. Its holdings grew just 0.2% during the third quarter, when the company acquired 7,218 BTC while selling 5,553 BTC.
Last week's 250 BTC was the second straight weekly decline in purchases.
Holdings still stand at 848,250 BTC, the total Strategy reported on its website.
Frequently asked questions
How did Strategy pay for its latest 250 BTC purchase?
Strategy said it funded $21 million of the $21.5 million purchase through sales of its common stock. The remaining $500,000 came from existing cash, according to the company's website announcement as reported by Cointelegraph.
Why hasn't Strategy filed an SEC report for this Bitcoin purchase?
Strategy typically reports its Bitcoin purchases in filings with the US Securities and Exchange Commission. The SEC was closed Monday for the Columbus Day holiday, so the company disclosed the purchase in an announcement on its website instead.
