@Strategy has disclosed another Bitcoin ($BTC) purchase alongside a large buyback of its STRC preferred stock, in a Form 8-K filed with the US Securities and Exchange Commission on Monday. Th
@Strategy has disclosed another Bitcoin ($BTC) purchase alongside a large buyback of its STRC preferred stock, in a Form 8-K filed with the US Securities and Exchange Commission on Monday. The filing also shows the company raising the ceiling on its repurchase program for digital credit securities to $3 billion.
Strategy bought 267 Bitcoin between Oct. 12 and Oct. 18, according to its filing. The company sold 140,872 shares of Class A common stock, generating $22.0 million in net proceeds used to purchase the coins, and aggregate holdings rose to 848,517 BTC at an aggregate purchase price of $64.02 billion. Cointelegraph reports the average price paid was about $82,900 per coin.
The purchase was small relative to the size of the treasury. In the prior week, the company had used just $0.5 million of USD Cash for bitcoin purchases , and holdings moved from 848,250 BTC on Oct. 11 to 848,517 BTC on Oct. 18. Strategy remains the largest public-company holder of Bitcoin , according to a TokenPost institutional tracker.
The more notable move was on the credit side. During the week of Oct. 12 to Oct. 18, Strategy used $193.1 million of USD Cash to fund repurchases of STRC stock. That covered 1,938,780 shares of STRC.
The board increased the digital credit securities repurchase authorization from $2.0 billion to $3.0 billion, with $1.16 billion remaining available. Under the program, repurchases may be made through open-market purchases, block trades, privately negotiated transactions, tender offers, exchange offers or other legally permissible means. The program was first set up in late June, when the company established a repurchase program of up to $1.0 billion covering digital credit securities including STRC, STRF, STRD and STRK.
Strategy has also stated an aim for STRC's trading level. Its stated objective is for STRC to trade over time at $99 to $100. Repurchases below par are one tool the company has described for supporting that target.
On the balance sheet, the USD Reserve stood at $4.83 billion and USD Cash at $447.3 million as of Oct. 18. That works out to roughly $5.3 billion in dollar assets, below the $5.5 billion disclosed a week earlier. The USD Reserve is intended to support dividends on preferred stock and interest on debt, while USD Cash can be used for broader purposes, including buying bitcoin.
The latest filing shows Strategy continuing to add Bitcoin while using a growing share of its cash to manage its own preferred securities.
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