Strategy ends 2-week silence...simultaneous purchase of 950 BTC and $174 million in preferred stock

▲ Strategy (MSTR), STRC/AI generated image

Strategy, the company with the largest holdings of Bitcoin (BTC), has resumed additional Bitcoin purchases after a two-week hiatus. Concurrently with the Bitcoin purchase, the company also initiated a $174 million share buyback of its own perpetual preferred stock, moving to defend its capital structure.

According to cryptocurrency media outlet Cointelegraph on September 21 (local time), Strategy announced through a Securities and Exchange Commission (SEC) filing that it acquired an additional 950 BTC, investing a total of $75.7 million. The average purchase price was approximately $79,684 per BTC. This increases Strategy's total Bitcoin holdings to 846,000 BTC. The total acquisition cost is $63.8 billion, with an overall average purchase price of $75,416.

Strategy spent $174 million repurchasing its perpetual preferred stock, STRC, in addition to Bitcoin purchases. The company bought back approximately 1.77 million shares of STRC in the open market over the past week. STRC is perpetual preferred stock issued by the company to finance additional Bitcoin purchases, and the company has recently been conducting a large-scale share buyback program to restore its par value of $100 and mitigate volatility.

Following these purchase and repurchase actions, Strategy's cash liquidity indicators also showed changes. The company's U.S. dollar reserves and cash equivalents totaled $5.04 billion. Of this, directly held cash remains at approximately $1.05 billion. The market has evaluated that the two-week suspension of Bitcoin purchases was not due to a depletion of company funds but rather a strategic pace adjustment.

Experts are paying attention to Strategy's complex financial strategy of continuing both spot Bitcoin purchases and preferred stock repurchases. With Bitcoin's price testing support at the $80,000 level, there is keen interest in whether Strategy's continuous additional buying pressure can continue to act as a pillar driving institutional investment sentiment in the virtual asset market.

[Key Article Summary]

-Strategy spent $75.7 million to acquire an additional 950 BTC, increasing its total holdings to 846,000 BTC.

-Simultaneously with the Bitcoin purchase, it repurchased its own perpetual preferred stock (STRC) worth $174 million.

-The company's current overall average Bitcoin price is $75,416, and available cash recorded $1.05 billion.

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