Strategy Buys $21.5M in Bitcoin and Repurchases STRC

Strategy Continues Its Bitcoin Accumulation Strategy

Bitcoin treasury firm Strategy has made another notable move in the crypto market. Between October 5 and October 11, the company purchased 250 Bitcoin for $21.5 million.

This recent acquisition came out to an average price of $86,194 per Bitcoin, including transaction fees. With this purchase, Strategy’s total holdings have expanded to 848,250 BTCBTC-0.71%.

In total, the company has spent $64 billion acquiring its Bitcoin stash over time, reflecting an average purchase price of $75,444 per coin across all buys.

Past performance of digital assets is not an indication of future results. Readers interested in historical price tracking can review details on Bitkub Market. Note that historical acquisition costs do not guarantee future returns.

How Strategy Funded Its Latest Acquisition

To fund this latest $21.5 million Bitcoin transaction, Strategy relied on a mix of equity sales and existing cash reserves.

The company raised $21 million by selling approximately 125,000 shares of its MSTR common stock through its ongoing at-the-market (ATM) equity program.

The remaining $500,000 needed for the purchase was covered using cash on hand. During this period, the firm did not sell any shares of its preferred stock.

Preferred Stock Buybacks and Treasury Reserve Management

Alongside its Bitcoin purchases, Strategy also focused on managing its equity structure by repurchasing preferred stock.

The company bought back 1,932,145 shares of STRC, its variable-rate Stretch preferred stock, spending $192.4 million.

Following this buyback, Strategy still has $354.8 million remaining under its authorized buyback program for preferred shares.

This activity follows a busy prior week when Strategy bought $29 million in Bitcoin and repurchased $176 million of STRC preferred stock after posting a $21 billion third-quarter gain.

Overview of Strategy's $5.5 Billion USD Assets

As of October 11, Strategy holds approximately $5.5 billion in total U.S. dollar assets across two primary accounts:

• Preferred Dividend and Debt Interest Reserve: $4.88 billion set aside specifically to pay preferred stock dividends and service debt interest.
• General Operational Cash: $640.5 million kept for general corporate purposes, including potential future Bitcoin buys.

Strategy initially created its dedicated USD reserve with $1.44 billion. It later set up the separate cash reserve after raising $2 billion through the sale of MSTR common stock.

Policy Updates, Bitcoin Sales, and Market Sentiment

Strategy has also proposed updates to its dividend policies, suggesting that dividends on its preferred stock accrue 365 days a year. The firm noted it retains the flexibility to sell up to $1.25 billion in Bitcoin under its digital credit capital framework.

In September, CEO Phong Le defended selling a portion of Bitcoin as the 'right trade,' just weeks before the firm set another holdings record at the end of September with a $143 million purchase.

Strategy CEO Phong Le defended selling Bitcoin as the 'right trade' in September, shortly before the firm reached a new holdings record.

Looking ahead, traders on the prediction market Myriad (owned by Decrypt's parent company Dastan) currently see a 5% chance that Strategy's total treasury will surpass 1,000,000 BTC by the end of the year.

If capital markets remain favorable and stock issuance proceeds smoothly, the firm may continue expanding its holdings; however, if market liquidity tightens or stock prices decline, the pace of treasury expansion could moderate.

Bitcoin Market Snapshot

During the announcement window, Bitcoin was trading around $82,727, reflecting a 4.29% decline over 24 hours. The 24-hour high was recorded at $84,231, while the low reached $82,957, with daily trading volume near $978.4 million.

Prediction market odds on Myriad indicated an 82% probability of price action settling between $82,000 and $84,000 for the day. Traders should keep short-term market volatility in mind when evaluating crypto assets.