Where did Strategy’s money go? It spent only $21.5 million on Bitcoin, but $192.4 million on preferred stock buybacks.
Disclosed on Oct. 12 (for the week of Oct. 5–11):
- Bought 250 BTC at an average price of $86,194; total holdings: 848,250 BTC at an average cost of $75,444
- Repurchased 1.93 million STRC preferred shares for $192.4 million
- The buyback amount was 8.95 times the amount spent on Bitcoin
Funding sources: Sold 125,000 MSTR common shares, raising $21 million; another $500,000 came from cash.
Still on the balance sheet: $4.88 billion in USD reserves + $640.5 million in cash = $5.52 billion.
My take: Strategy is shifting from “buy Bitcoin at all costs” to “balance sheet management.” STRC is a floating-rate preferred stock, so buying it back eliminates future dividend obligations. In a high-interest-rate environment, paying down “debt” before buying more Bitcoin is rational. But it also means that the largest corporate buyer of Bitcoin is slowing its buying pace.
$BTC
My personal opinion only; this is not investment advice.
Disclosed on Oct. 12 (for the week of Oct. 5–11):
- Bought 250 BTC at an average price of $86,194; total holdings: 848,250 BTC at an average cost of $75,444
- Repurchased 1.93 million STRC preferred shares for $192.4 million
- The buyback amount was 8.95 times the amount spent on Bitcoin
Funding sources: Sold 125,000 MSTR common shares, raising $21 million; another $500,000 came from cash.
Still on the balance sheet: $4.88 billion in USD reserves + $640.5 million in cash = $5.52 billion.
My take: Strategy is shifting from “buy Bitcoin at all costs” to “balance sheet management.” STRC is a floating-rate preferred stock, so buying it back eliminates future dividend obligations. In a high-interest-rate environment, paying down “debt” before buying more Bitcoin is rational. But it also means that the largest corporate buyer of Bitcoin is slowing its buying pace.
$BTC
My personal opinion only; this is not investment advice.