Strategy buys 267 Bitcoin, repurchases $193 million of STRC preferred stock
In brief
- Strategy bought 267 BTC for about $22 million, funded by MSTR at-the-market stock sales.
- Total holdings reached 848,517 BTC, worth roughly $70 billion depending on the Bitcoin price.
- Strategy repurchased 1.94 million STRC preferred shares for about $193 million.
- Digital credit buyback authorization rose to $3 billion from $2 billion.
- USD Reserve stood at $4.8 billion as of Oct. 18; USD Cash was $447 million.
How the Bitcoin buy was funded
Common stock paid for this one. Strategy funded the purchase with $22 million in net proceeds from selling 140,872 MSTR shares through its at-the-market offering program, plus $100,000 in USD Cash, according to the filing.
The preferred side of that program sat idle. Strategy reported no sales of its STRF, STRC, STRK or STRD preferred stock through the program during the period.
Crypto Briefing put the value of the 848,517 BTC at approximately $70 billion. That's an approximate number, and it moves with the Bitcoin price (it isn't a fixed figure).
Buybacks on the preferred side
Strategy also bought back 1.94 million shares of STRC preferred stock for about $193 million between Oct. 12 and Oct. 18, per the filing.
The company raised the aggregate authorization for its digital credit securities repurchase program to $3 billion, up from $2 billion. After that increase, $1.16 billion remained available for repurchases as of Oct. 18.
There's more room on the common side, too.
Strategy had an additional $1 billion available under its separate MSTR common stock repurchase program, according to the filing as reported by Crypto Briefing.
Two cash buckets, two jobs
Strategy used $45.5 million from its USD Reserve to pay preferred stock dividends during the week. The reserve stood at $4.8 billion as of Oct. 18, while the company's separate USD Cash balance was $447 million.
The two balances aren't interchangeable. The USD Reserve is intended to support preferred stock dividends and interest payments on outstanding debt; USD Cash can be used for Bitcoin acquisitions, reserve expansion and other capital management needs, according to the filing.
So last week's filing shows a small BTC add, a nine-figure STRC buyback and a bigger repurchase authorization, all reported in the same Monday disclosure.
Frequently asked questions
How did Strategy pay for its latest Bitcoin purchase?
Strategy funded the 267 BTC purchase with $22 million in net proceeds from selling 140,872 shares of MSTR common stock through its at-the-market offering program, plus $100,000 in USD Cash. It reported no sales of STRF, STRC, STRK or STRD preferred stock through the program during the period.
What is the difference between Strategy's USD Reserve and USD Cash?
The USD Reserve is intended to support preferred stock dividends and interest payments on outstanding debt, and stood at $4.8 billion as of Oct. 18. USD Cash, at $447 million, can be used for Bitcoin acquisitions, reserve expansion and other capital management needs.
