Strategy buys 250 Bitcoin for $22 million, lifting holdings to 848,250 BTC
In brief
- Strategy added 250 BTC for about $22 million, bringing total holdings to 848,250 BTC.
- MSTR stock sales provided $21 million of the funding, and USD Cash provided $500,000.
- Strategy repurchased 1.93 million STRC preferred shares for about $192 million between Oct. 5 and Oct. 11.
- Strategy held about $4.9 billion in its USD Reserve and over $640 million in USD Cash.
How the buy was funded
Strategy said in a press release that it paid for the coins with $21 million in net proceeds from MSTR stock sales and $500,000 in USD Cash. Equity issuance is still doing most of the work.
The company runs two separate cash buckets, and the disclosure shows how big both have gotten. As of Oct. 11, Strategy held approximately $4.9 billion in its USD Reserve and more than $640 million in USD Cash. So what's the difference? The reserve was designed to support preferred stock dividends and interest payments on outstanding debt, while USD Cash can fund Bitcoin purchases and other treasury management activities.
Buybacks on the preferred side
Strategy also reported buying back 1.93 million STRC preferred shares for about $192 million between Oct. 5 and Oct. 11. In dollar terms, that's far more than the $22 million that went into Bitcoin.
It didn't make any other buybacks during the period. No repurchases were recorded for its STRF, STRK or STRD preferred shares, or for MSTR Class A common stock, during the same period. According to the disclosure, Strategy has nearly $355 million left for preferred stock repurchases under its digital credit securities program and $1 billion available for MSTR common stock buybacks.
Where the stack stands
It's a small buy for a company sitting on 848,250 BTC.
Crypto Briefing reported that Strategy has bought more than 7,800 Bitcoin since resuming acquisitions after it sold 1,690 BTC earlier in August. Per the outlet, the company owns more than 4% of Bitcoin's total supply, far ahead of other publicly traded companies running BTC treasury strategies, and it described Strategy as the leader among publicly traded corporate Bitcoin holders.
Frequently asked questions
What's the difference between Strategy's USD Reserve and USD Cash?
Strategy's USD Reserve was designed to support preferred stock dividends and interest payments on outstanding debt. USD Cash can fund Bitcoin purchases and other treasury management activities. As of Oct. 11, the company held approximately $4.9 billion in the reserve and more than $640 million in USD Cash.
How did Strategy pay for its latest 250 BTC purchase?
Strategy said in a press release that it funded the roughly $22 million purchase with $21 million in net proceeds from MSTR stock sales and $500,000 in USD Cash. The buy brought its holdings to 848,250 BTC.
