Strategy bought 950 bitcoin for $75.7 million in the week ended September 20, while spending a larger $174.0 million to repurchase its STRC preferred shares. The company disclosed both transactions in a September 21 filing, reporting that the bitcoin was acquired at an average price of $79,670 per coin, including fees and expenses.
The paired transactions put $249.7 million of cash toward bitcoin and a preferred-share repurchase during the period. The STRC buyback was more than twice the size of the week’s bitcoin outlay, based on the disclosed figures, while Strategy said both purchases were funded from USD Cash.
Strategy adds 950 BTC at a $79,670 average price
The 950 BTC purchase took place between September 14 and September 20, according to Strategy’s Form 8-K. The $75.7 million total equates to an average acquisition price of $79,670 per bitcoin when fees and expenses are included.
Following the purchase, Strategy held 846,000 BTC. The company said those holdings had been acquired for $63.80 billion in aggregate, at an average cost of $75,416 per bitcoin.
The latest acquisition price was therefore $4,254 above the company’s stated average cost across its full bitcoin position. That comparison reflects acquisition costs disclosed by Strategy, rather than a current valuation of the holdings.
The filing places the latest purchase within a relatively short reporting window of one week. It does not, in the supplied disclosure, set out a separate financing transaction for the bitcoin acquisition during that period.
STRC buyback exceeds the week’s bitcoin outlay
Over the same period, Strategy repurchased 1,771,238 shares of STRC for $174.0 million. The repurchase exceeded the $75.7 million spent on bitcoin by $98.3 million.
Strategy did not repurchase any STRF, STRK, STRD or MSTR shares in the period, the filing said. The disclosed activity was therefore confined to STRC among those listed security classes.
The company’s use of cash for the two transactions is notable because the larger allocation in the week went to the STRC repurchase rather than the bitcoin purchase. Strategy did not state in the information provided why it selected that mix of purchases, so the figures alone do not establish a change in its broader capital-allocation approach.
Cointelegraph reported that Strategy had $875.1 million remaining under its preferred-stock repurchase authorization after the week’s activity. That remaining amount provides room for further repurchases, though it is an authorization rather than a disclosed commitment to deploy the balance.
Cash-funded purchases leave separate reserve and cash balances
Strategy funded both the bitcoin purchase and the STRC repurchase with USD Cash, according to its filing. As of September 20, the company reported $1.05 billion in USD Cash and $5.04 billion in USD Reserve.
The filing reports USD Cash and USD Reserve as separate balances. It does not indicate in the supplied facts that the week’s purchases were financed by sales through the company’s at-the-market, or ATM, programs.
Independent coverage said Strategy sold no shares through its ATM programs during the week. That means the disclosed bitcoin acquisition and STRC repurchase were cash-funded without reported ATM share sales in the same period.
The $5.04 billion USD Reserve figure sits alongside the $1.05 billion USD Cash figure reported as of September 20. Strategy’s latest disclosure consequently gives investors a dated snapshot of the company’s bitcoin accumulation, STRC repurchase activity and reported dollar balances at the end of the purchase window.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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