Strategy Repurchases $174 Million of STRC Preferred Stock Alongside 950 Bitcoin Buy
The 8-K filed Monday shows Strategy bought 950 BTC for about $75.7 million and spent $174 million buying back its own STRC preferred stock in the same week.
Strategy spent $174 million buying back its own STRC preferred stock in the week to Sept. 20, disclosing the repurchase of 1,771,238 shares in a Form 8-K filed with the Securities and Exchange Commission on Sept. 21. The filing also shows the company bought 950 bitcoin for about $75.7 million over the same window, at an average of $79,670 per coin, lifting holdings to 846,000 BTC.
The buyback is the larger capital-structure move in the filing. Strategy also used $57.4 million of its USD Reserve to pay preferred-stock dividends and interest on outstanding debt during the period, and funded the bitcoin purchases from its USD Cash reserve rather than new equity issuance. As of Sept. 20 the USD Reserve stood at $5.04 billion and USD Cash at $1.05 billion.
STRC traded below par in August, when the company reported an $8 billion quarterly loss. The filing gives no rationale for the repurchases, and the company has made no statement beyond the figures it disclosed.
The bitcoin position is nonetheless near its peak. The 846,000 BTC cost an aggregate $63.8 billion, an average of $75,416 per coin, and the company reported no sales under its at-the-market offering last week. The figure is the highest since June, when Strategy sold 1,363 BTC after holdings had reached a record 847,363 BTC.
MSTR closed Friday at $153.92, up 16.4% for the week, though the stock remains down 54.2% over the past year. Bitcoin traded near $85,000 on Sept. 21, its highest level since late January, per CoinGecko.
