Strategy Stops Buying Bitcoin and Drops $139M on STRC Instead

• MSTR
• BTC-USD

• Michael Saylor’s Strategy bought no <a href="https://xpertsstudio.com/forecast-update-for-<a href="https://xpertsstudio.com/bitcoin-needs-to-reach-82900-to-outrun-a-looming-miner-margin-squeeze/” title=”Bitcoin needs to reach $82,900 to outrun a looming miner margin squeeze”>bitcoin-15-09/” title=”Forecast update for Bitcoin -15-09″>Bitcoin for a second consecutive week, leaving its holdings unchanged at 845,050 BTC.

• Instead, the company spent $139.3 million repurchasing 1.42 million shares of its STRC preferred stock between Sept. 8 and Sept. 13.

• Longtime Bitcoin critic Peter Schiff has intensified his attacks on Strategy and Saylor, arguing that the company’s capital structure is under mounting pressure.

Strategy has once again passed on buying Bitcoin, instead directing another $139 million toward supporting its preferred stock.

The Michael Saylor-led company repurchased 1,420,467 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) for approximately $139.3 million between Sept. 8 and Sept. 13, according to its latest filing.

The purchases were funded entirely from Strategy’s USD Cash reserve. The company did not buy or sell any Bitcoin during the period, marking the second consecutive week that its BTC holdings remained unchanged.

Strategy Puts $139M Into STRC, Not Bitcoin

Strategy currently holds 845,050 BTC, acquired for roughly $63.73 billion at an average purchase price of $75,412 per coin. Its last purchase came in late August, when it acquired 4,603 BTC for $369.7 million.

The latest STRC repurchase follows an even larger $176.3 million buyback the previous week.

Strategy also recently doubled its Digital Credit Securities Repurchase Program from $1 billion to $2 billion, giving management greater capacity to support STRC and its other preferred securities. Around $1.05 billion remained available under the program following the latest purchases.

STRC is particularly important to Strategy’s financing model. The perpetual preferred security was designed to trade around a $100 par value and provides the company with another route for raising capital alongside common stock and debt.

Buying STRC below par can therefore support the security while reducing the number of preferred shares on which Strategy must pay dividends.

Why Has Strategy Paused Bitcoin Buying?

The move does not necessarily signal that Saylor has abandoned his Bitcoin strategy.

Instead, it highlights how Strategy’s priorities have broadened as it manages the increasingly complex financing structure built around its enormous Bitcoin treasury.

As of Sept. 14, Strategy reported $5.1 billion in its USD Reserve and another $1.3 billion in USD Cash. The reserve is intended primarily to cover preferred dividends and debt interest, while USD Cash can be deployed more flexibly, including for Bitcoin purchases and securities repurchases.

Source: finance.yahoo.com