Strategy's 950 BTC Buy Marks End of Two-Week Hiatus

The company purchased 950 Bitcoin (BTC) during the week ending Sept. 20 and also bought back $174 million of its preferred stock. This brings its total holdings to 846,000 BTC.

The acquisition follows a two-week stretch without any buying. At the $81,200 price used in Monday's filing, the 950 coins are valued at around $77 million.

Strategy's Latest Bitcoin Purchase Lags August Volume

Its prior buying spree concluded on Aug. 31, when it snapped up 4,603 BTC for $369.7 million at an average of $80,318 per coin, putting an end to a 10-week lull. In dollar terms, last week's purchase is roughly 79% smaller.

Michael Saylor, executive chairman, hinted at the move on Sunday with a post that read "A little more orange."

Bitcoin has since risen past the price used in Strategy's calculations. On Monday, the asset was trading around $85,104, up 5.8% over the prior 24 hours.

Preferred Buyback Costs Double the Bitcoin Spend

The $174 million was used to repurchase Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), a Nasdaq-listed share class designed to trade near $100. That outlay is more than twice what the bitcoin purchase cost.

Strategy began buying STRC in late July at an average of $86.52 per share. The stock closed Friday at $98.51. Chief Executive Phong Le laid out the reasoning when the program launched.

"At prices below $100 per share, STRC repurchases represent an attractive allocation of capital because they can reduce future preferred dividend requirements at a discount."

Those buybacks are sourced from common share sales and potential bitcoin sales, not the company's cash reserves, which totaled $6.09 billion on Sept. 20. The structure stems from the Digital Credit Capital Framework unveiled by Strategy in June.

BeInCrypto had previously noted that STRC drifting back toward par in August was a key condition for resuming bitcoin purchases. Those purchases have resumed, albeit at a much slower clip.

MSTR common stock trades at 0.88 times the value of its bitcoin holdings, according to BitcoinTreasuries. The next filing, due Monday, will reveal whether 950 coins marked a one-off or a new tempo.