Strategy returns to Bitcoin buying, acquires 950 BTC for $75.7 million

Strategy acquired the coins at an average price of $79,670 each, significantly below the $85,000 level seen on Monday. This indicates the purchase occurred before the short-squeeze rally, securing a discount relative to Bitcoin's current price. This purchase ends a roughly three-week period without additional buys, during which Bitcoin fell to about $75,000 before rebounding last week. Strategy re-entered the market as prices were recovering, not at the lowest point. The $75.7 million buy is modest compared with the company's $63.80 billion total holdings. It was funded from the USD Cash account, which also supported stock buybacks and dividend payments that week, suggesting continued routine buying rather than a new big bet. MSTR stock climbed with the broader cryptocurrency market on Monday, but that gain is more tied to Bitcoin's price move than to this particular acquisition.

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Previous coverage:

• Bitcoin rally to eight-month high leads analyst to sell and take profits
• Ether reaches January peak: factors to watch for sustained gains (note: one whale does not make a trend)

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Strategy started buying Bitcoin again at prices under $80,000 last week, ahead of the market's short-squeeze that pushed prices above $85,000.

Summary:

• According to a Monday SEC filing, Strategy purchased 950 Bitcoin for $75.7 million from September 14 to 20, marking its first buy since August 31.
• The average price paid was $79,670, using funds from the USD Cash reserve instead of issuing new shares.
• Total Bitcoin holdings are now 846,000 BTC, bought for a combined $63.80 billion at an average of $75,416, per the filing.
• The filing also reveals $174.0 million from USD Cash was used to buy back STRC shares, and $57.4 million from the USD Reserve went to preferred dividends and interest in the same week.
• By September 20, the USD Reserve held $5.04 billion and USD Cash held $1.05 billion.
• The $79,670 purchase price is far below Monday's $85,000+ level from the short-squeeze, meaning the buy happened before the latest upward move.

Strategy has restarted its Bitcoin purchases after approximately three weeks, as disclosed in a Monday regulatory filing. The firm, under Executive Chairman Michael Saylor, purchased 950 BTC for $75.7 million from September 14 to 20, averaging $79,670 per coin. This was the first purchase since August 31, a period that saw Bitcoin fall to about $75,000 before starting to recover last week. The buy brings total holdings to 846,000 BTC, acquired for a total of $63.80 billion at an average price of $75,416.

The timing is significant as the company re-entered before Monday's sharp price increase. On the day of the filing, Bitcoin was above $85,000, an eight-month peak caused by a wave of short liquidations. This puts Strategy's $79,670 average well below the current market price. The price difference does not prove the buy was intentionally timed before the rally. The filing only indicates when the purchase occurred, not the reason, and Strategy has historically bought in both up and down markets.

The same filing indicates the Bitcoin buy was one of several cash uses by the company that week. Strategy spent $174.0 million from USD Cash on STRC stock buybacks, and $57.4 million from a separate USD Reserve on preferred dividends and debt interest. The company maintains two separate accounts: the USD Reserve for fixed obligations, and USD Cash for broader uses, including Bitcoin purchases. As of September 20, the USD Reserve stood at $5.04 billion and USD Cash at $1.05 billion, indicating the remaining capacity for each.

Looking ahead, a key indicator is whether Strategy continues buying with Bitcoin now well above its latest purchase price. A pause during a rally would signal a different appetite than a pause during a decline. Another metric to monitor is the USD Cash balance relative to the STRC buyback program, as both draw from the same pool, and increased buybacks would reduce funds available for Bitcoin. Investors should consider each weekly filing independently rather than expecting last week's pattern to continue.

Explanation of key terms:

USD Cash and USD Reserve are the two liquidity accounts used by Strategy. The USD Reserve is designated for preferred dividends and debt interest. USD Cash has a broader use, including Bitcoin purchases, so the balances indicate the company's capacity for each spending category.

Average purchase price refers to the total expenditure on Bitcoin divided by total coins held, updated after each buy. Comparing this average to the current market price indicates the unrealized gain or loss on the entire position, not just the most recent purchase.

An 8-K filing is a form required by the SEC for timely disclosure of material events. Strategy submits these filings weekly to report Bitcoin buys and related capital actions, meaning the data in this article comes directly from the company.