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- Strategy bought 1,036 BTC for $81.9 million at an average of $79,012, bringing its holdings to 850,364 BTC, or about 4.05% of total supply.
- Since October, it has spent about $1.06 billion buying back STRC preferred shares, nearly five times the $219.7 million spent on Bitcoin.
- MSTR fell 3% to $125 in premarket trading, while the company’s USD reserve slipped to $4.77 billion after dividend payments.
Strategy added 1,036 BTC to its treasury last week, paying $81.9 million. The purchase is modest by the company’s standards, and the bigger story is where most of its cash is going instead: buybacks of its own preferred stock.
The Bitcoin Purchase
According to a Monday filing with the US Securities and Exchange Commission, Strategy paid an average of $79,012 per coin. That brings its total holdings to 850,364 BTC, roughly 4.05% of Bitcoin’s 21 million maximum supply. The company says it has paid $64.16 billion in total, at an average of $75,456 per coin. Last week’s buy came in above that overall average, so it nudged the company’s cost basis higher.
It also follows the previous week’s purchase of 811 BTC for $65.5 million, which means the company has kept buying for two weeks in a row, though in smaller amounts.
Where the Money Came From, and Where It Went
Strategy raised $283.8 million in net proceeds by selling about 2.05 million shares of its common stock, MSTR, through its at-the-market program. The split is revealing:
- $188.3 million went to repurchasing about 1.89 million STRC preferred shares
- $81.9 million went to Bitcoin
- $13.6 million went to the company’s USD cash balance
That follows $208.2 million in STRC buybacks the week before. Since early October, Strategy has spent about $1.06 billion on STRC repurchases, nearly five times the $219.7 million it put into Bitcoin over the same stretch.
What the Balance Sheet Shows
Separately, the company’s US dollar reserve slipped to $4.77 billion from $4.79 billion after it drew $21.1 million to pay preferred stock dividends. Its USD cash balance rose about 10%, to $146.2 million from $132.7 million.
The filing comes shortly after shareholders approved daily dividends for four of Strategy’s preferred stocks, a reminder of how much of the company’s cash flow now goes to servicing its preferred stock.
Also Read: Bitcoin Developer Wants Quantum Thieves to Pay for Their Own Trap
How the Market Reacted
Investors were not impressed. MSTR fell 3% to $125 in Monday’s premarket trading, while STRC edged down 0.06% to $99.70, according to Yahoo Finance.
Strategy is still adding Bitcoin, but the numbers show a company that is putting preferred stock stability ahead of buying coins. The filing doesn’t explain why the buybacks are so large, and it doesn’t say how long they will continue. The next few weekly filings will show whether Bitcoin purchases pick up again or the buybacks keep taking the larger share.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
