Michael Saylor (@saylor) posted "We found room for more orange," a phrase his followers read as a hint at another Bitcoin ($BTC) purchase by Strategy (@Strategy). The teaser comes as the comp
Michael Saylor (@saylor) posted "We found room for more orange," a phrase his followers read as a hint at another Bitcoin ($BTC) purchase by Strategy (@Strategy). The teaser comes as the company's recent buying has slowed and its spending has shifted towards its own preferred stock.
Strategy holds 848,250 $BTC. That total was bought at an average price of $75,444 per Bitcoin, according to TradingView News, which cited a filing with the US Securities and Exchange Commission. CryptoSlate put the cost of the stack at approximately $64 billion. At current market prices, the position is worth roughly $69 billion to $70 billion, depending on the Bitcoin price used. 24/7 Wall St. valued it at about $70.6 billion at a Bitcoin price near $83,280.
The most recent weekly purchase was modest. Strategy disclosed on Oct. 12 that it acquired 250 Bitcoin for about $21.5 million between Oct. 5 and Oct. 11, extending a slowdown that saw purchases fall to 334 BTC the previous week, CryptoSlate reported. The company paid an average of $86,194 per Bitcoin over that week. The buy was about 0.03% of its total holdings, according to Yahoo Finance.
The larger outlay went to Strategy's preferred stock. The company repurchased 1.9 million STRC preferred shares for $192.4 million, almost nine times what it spent on Bitcoin in the same week.
CryptoSlate added that Strategy paid an implied average of about $99.58 per share, a discount of less than 0.5% to the preferred stock's stated value. The same report said $354.8 million remained under the company's digital credit securities repurchase program.
The pairing of small Bitcoin buys with large preferred repurchases has raised questions about how Strategy balances its Bitcoin accumulation with its financing obligations, as the two compete for the same pool of capital. Strategy has not confirmed another purchase following Saylor's latest hint, so any new buy would only be confirmed in the company's next regulatory filing.
Investors will be watching whether the next disclosure shows a larger Bitcoin purchase or another week of heavier preferred stock repurchases.
Sources:
CryptoSlate: Strategy spent nearly nine times as much on STRC buybacks as BitcoinTradingView News: Strategy buys just 250 Bitcoin, its smallest purchase of 202624/7 Wall St.: Strategy bought 250 Bitcoin and spent nearly nine times that on preferred buybacks
