Strategy Spends $176M On STRC Buybacks Instead Of Bitcoin

Strategy repurchased $176 million of its STRC preferred shares last week and bought no Bitcoin(BTC), leaving its holdings at 845,050 coins.

Key Points:

• Strategy made no Bitcoin purchases or sales during the week ended Sept. 7, holding 845,050 BTC.
• The company bought back 1,810,885 STRC preferred shares for about $176.3 million, funded from cash.
• Its board doubled the Digital Credit Securities Repurchase Program to $2 billion from $1 billion.

Strategy Halts Bitcoin Buys, Doubles Repurchase Cap

An 8-K report filed with the Securities and Exchange Commission on Tuesday showed the company acquired 1,810,885 STRC shares for roughly $176.3 million. The board also doubled its Digital Credit Securities Repurchase Program to $2 billion. Executive Chairman Michael Saylor<a href="https://cryptopotato.com/no-bitcoin-for-strategy-this-week-as-focus-remains-on-strc-buybacks/” rel=”nofollow noopener” target=”_blank”>posted the figures on X the same morning.

The firm said it funded the buybacks entirely from USD Cash, a pool it keeps for general treasury purposes. That account held $1.44 billion on Sept. 7, alongside a separate dollar reserve of $5.10 billion set aside for preferred dividends and interest on the company’s debt.

Strategy still holds 845,050 BTC, more than 4% of the 21 million supply cap, a stake worth roughly $66.1 billion at Tuesday’s prices. At an average cost of $75,412 per coin, the position carries about $2.4 billion in paper gains. Bitcoin traded near $78,300 on Tuesday, holding most of a rebound that carried the price above $80,000 during August.

Phong Le Defends Bitcoin Sales

Chief Executive Phong Le said last week that selling roughly 7,000 BTC in the $60,000 to $65,000 range was the right trade at the time, because the proceeds covered preferred dividends. He said Strategy cut net debt from about $7 billion to zero and built close to $7 billion in cash reserves during the purchasing pause.

The company resumed buying in late August at an average price of $80,318. STRC, a variable rate perpetual preferred security, is built to trade near a $100 reference value, and the repurchases push the share price back toward that mark. The stock traded near $97 on Tuesday, well above a June low around $76.

Saylor and Le also argued in a letter to MSCI that a plan to exclude non-operating companies from its Global Investable Market Indexes is discriminatory and should be withdrawn. Strategy said the proposed screen would not meaningfully affect its business, but would damage the index provider’s standing as a neutral arbiter of global markets.

Strategy’s Bitcoin Buying Turns Erratic

Strategy stopped buying Bitcoin for about 10 weeks over the summer while it repaired its balance sheet and rebuilt cash. During that stretch the company sold coins rather than bought them, unwinding part of the treasury in the low $60,000s before paying above $80,000 in August. MSTR closed Friday at $142.80, up 6.6% on the week but down 7.6% this year.

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Source: yellow.com