The world's leading corporate treasury management company of Michael Saylor, Strategy (NASDAQ: MSTR), reported in its latest SEC filing that it spent $176.3 million to repurchase its own STRC preferred shares.
During the same week, the company also doubled the size of its digital bond buyback program to $2 billion, while neither increasing nor decreasing the Bitcoin in its $63.73 billion portfolio (845,050 $BTC). Strategy also did not sell new shares.
Strategy's maintenance of its Bitcoin positions followed its first Bitcoin purchase in two months, which occurred in late August after a 10-week period of no purchases.
What Does It Mean When Strategy Doesn't Buy Bitcoin?
After relentlessly buying Bitcoin across various market scenarios, analysts are now watching Strategy's treasury management actions—including Bitcoin, common stock, preferred stock, and cash—for signals.
Its Form 8-K report for the period from August 31 to September 7 stated that the company did not buy or sell Bitcoin. It also did not sell shares under its at-the-market offering program.
As of this report, Strategy's $BTC holdings remained unchanged from the last Cryptopolitan report, standing at approximately 845,050 $BTC, for which the company paid about $63.73 billion, at an average cost per coin of $75,412.
At the current Bitcoin price, its holdings are valued at approximately $66.1 billion, representing an approximate $2.4 billion paper profit.
What Did Company Strategy Acquire?
Company Strategy did not buy Bitcoin, but it repurchased 1,810,885 shares of its own variable-rate preferred stock (STRC) for $176.3 million. As of September 7, the company has about $1.19 billion available.
Funds for the stock repurchase were allocated from the company's US Dollar cash account.
Balances in the company's other reserves were:
- $5.10 billion in reserves designated for preferred dividend and debt interest payments.
- $1.44 billion in cash—a more flexible pool for share buybacks, dividend payments, or new cryptocurrency purchases.
The Board of Directors also doubled the total authorized amount for the Digital Bond Repurchase Program, increasing it from $1 billion to $2 billion.
For most of the summer, STRC shares traded below their $100 par value. According to Google Finance, on September 8, STRC shares sold for $97.75, still below par but significantly higher than their 52-week low of $71.25.
What is the Status of Strategy Now?
CEO Phong Le defended four times over the summer the sale of approximately $544 million worth of Bitcoin to meet obligations.
Last week, Le stated that selling about 7,000 $BTC at prices between $60,000 and $65,000 was "the right trade at that time" to fund preferred dividend payments, and that the company reduced net debt from approximately $7 billion to zero while accumulating about $7 billion in cash.
As Cryptopolitan previously reported, Company Strategy acquired 4,603 $BTC for approximately $369.7 million at an average price of $80,318 per coin between August 24 and 30, marking its first purchase in two months.
MSTR shares closed Friday at $142.80, up 6.6% for the week and down 7.6% year-to-date after a recovery, though still down 56.7% over the past year. In pre-market trading on September 8, shares fell approximately 2.8% to $138.79.
On its credit risk dashboard, Company Strategy reported that the STRC credit spread for $BTC declined by one basis point to 53 basis points, based on an assumed 10% annual $BTC yield, 40% volatility, and a Bitcoin price of $79,809.
According to Bitcoin Treasuries, 197 public companies currently use Bitcoin in some capacity, with Twenty One Capital, Metaplanet, MARA Holdings, and Bitcoin Standard Treasury Company rounding out the top five after Strategy.
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