This week, MicroStrategy didn’t buy a single bitcoin.
An announcement from MicroStrategy founder Saylor: it repurchased $205 million of its own preferred stock $STRC . It currently holds 848,517 bitcoin $BTC , along with $5.1 billion in dollar assets.
Last week, it didn’t buy a single bitcoin either. The money went toward buying back STRC. What does this mean?
MicroStrategy’s old cycle was: issue stock and debt → buy bitcoin → bitcoin price rises → stock price rises → raise more capital.
Now it has paused its bitcoin purchases and started using cash to buy back the preferred stock it issued.
It’s not that it can’t afford to buy bitcoin. It has $5.1 billion in assets, but has chosen to shore up its capital structure first. It increased the size of its preferred stock repurchase program from $2 billion to $3 billion.
An announcement from MicroStrategy founder Saylor: it repurchased $205 million of its own preferred stock $STRC . It currently holds 848,517 bitcoin $BTC , along with $5.1 billion in dollar assets.
Last week, it didn’t buy a single bitcoin either. The money went toward buying back STRC. What does this mean?
MicroStrategy’s old cycle was: issue stock and debt → buy bitcoin → bitcoin price rises → stock price rises → raise more capital.
Now it has paused its bitcoin purchases and started using cash to buy back the preferred stock it issued.
It’s not that it can’t afford to buy bitcoin. It has $5.1 billion in assets, but has chosen to shore up its capital structure first. It increased the size of its preferred stock repurchase program from $2 billion to $3 billion.
