According to the company's Form 8-K report, it has now been three consecutive weeks since its last Bitcoin purchase. Instead, as per a document filed with the SEC on September 14 covering the previous week, the company acquired STRC preferred shares worth $139.3 million.
Strategy's Bitcoin holdings remain unchanged at 845,050 $BTC since the last acquisition of nearly $370 million worth of Bitcoin on August 31. Prior to that, the company had not purchased $BTC for 10 consecutive weeks.
Strategy Opts for Share Buyback Over Bitcoin Purchase
Michael Saylor-led Bitcoin continues to allocate cash to bring its STRC preferred shares back to their par value of $100. In the report filed with the U.S. Securities and Exchange Commission on September 14, covering the period from September 8 to 13, Strategy repurchased 1,420,467 STRC shares.
According to Google Finance, STRC shares are trading at $98.64, below the $100 target price that the company considers its par value. Management views share purchases below $100 as profitable, as repurchasing shares at a discount eliminates future dividend payments the company would otherwise have to make.
STRC holds higher priority compared to MSTR common shares and is positioned as a short-term "digital credit," backed by the company's cash and Bitcoin, though without direct ownership of the coins themselves.
Notably, the company has not sold any Bitcoin or anything else as part of its equity market program. For two consecutive weeks now, Strategy has not touched its MSTR common shares.
Bitcoin Treasuries, by company Strategy Bitcoin holdings, acquired
The latest STRC purchase was funded from Strategy's U.S. dollar cash pool, which is the more flexible of the company's two dollar reserves. As of September 13:
- U.S. reserves designated for preferred stock dividends and debt interest payments total $5.10 billion
- $1.30 billion in general U.S. Cash
Share Buybacks Becoming a Pattern
As Cryptopolitan reported last week, Strategy spent $176.3 million on 1,810,885 STRC shares, after which it was announced that the board of directors had approved doubling the ceiling of the digital credit security buyback program to $2 billion.
According to documents, after the latest funding round, $1.05 billion remains available for repurchasing preferred shares and $1.0 billion for repurchasing MSTR common shares.
On September 14, Saylor published on the company's credit risk dashboard information indicating that the "$BTC credit" for STRC is 57 basis points, with a dollar duration of 3.9 years, based on assumptions of a 10% annual Bitcoin return, 40% volatility, and a Bitcoin price of $77,266.
According to Google Finance, MSTR's closing price was $130.97. Strategy still leads the Bitcoin Treasuries ranking, which includes 197 public companies accumulating Bitcoin in one form or another, ahead of Twenty One Capital, Metaplanet, and MARA Holdings.
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