MSTR spent $143 million on buying coins and $152 million on repurchasing preferred stock
In the 8-K filed on September 28, Strategy bought 1,665 bitcoins at an average price of $85,681, bringing its holdings to 847,666—4% over the 21 million coin limit.
In the same week, it repurchased its own STRC preferred stock, spending $151.7 million. That’s more than the $142.7 million it spent on buying coins.
Where did the money come from? It issued 1.47 million new shares of MSTR and netted $246.2 million. $142.7 million went into the vault, $103.5 million went to repurchase preferred stock, and another $48.1 million in cash was allocated elsewhere.
The market is suddenly talking about this, not because of those 1,665 coins, but because the “issue shares—buy coins” machine added another loop.
Some say that STRC once traded at a discount below its par value of $100; the repurchase average price was $98.86, and the price was only pulled back to around $99.
An official calculator for credit pricing was also launched around the same time, putting preferred stock quotes and terms side by side for comparison.
The other side has something to say too: the average buy price of the coins, $85,681, was higher than the market price at the time—so that portion is already an unrealized loss.
There are also reports that a group of Treasury company shareholders have cumulatively lost about $50 billion, with the company’s overall market value down roughly 40% from its peak.
If the money spent on repurchasing preferred stock keeps exceeding the money spent on buying coins, will MSTR’s stock price still track Bitcoin?
In the 8-K filed on September 28, Strategy bought 1,665 bitcoins at an average price of $85,681, bringing its holdings to 847,666—4% over the 21 million coin limit.
In the same week, it repurchased its own STRC preferred stock, spending $151.7 million. That’s more than the $142.7 million it spent on buying coins.
Where did the money come from? It issued 1.47 million new shares of MSTR and netted $246.2 million. $142.7 million went into the vault, $103.5 million went to repurchase preferred stock, and another $48.1 million in cash was allocated elsewhere.
The market is suddenly talking about this, not because of those 1,665 coins, but because the “issue shares—buy coins” machine added another loop.
Some say that STRC once traded at a discount below its par value of $100; the repurchase average price was $98.86, and the price was only pulled back to around $99.
An official calculator for credit pricing was also launched around the same time, putting preferred stock quotes and terms side by side for comparison.
The other side has something to say too: the average buy price of the coins, $85,681, was higher than the market price at the time—so that portion is already an unrealized loss.
There are also reports that a group of Treasury company shareholders have cumulatively lost about $50 billion, with the company’s overall market value down roughly 40% from its peak.
If the money spent on repurchasing preferred stock keeps exceeding the money spent on buying coins, will MSTR’s stock price still track Bitcoin?