Strategy Buys $370M Of Bitcoin In First Purchase Since June
The short version
- The Bitcoin treasury company picked up 4,603 BTC for $369.7 million in the week to August 30, at an average of $80,318 apiece…
- That takes its stack to 845,050 BTC, bought for $63.73 billion at an average of $75,412.
- It paid for the purchase by issuing stock.
- Strategy sold 4,531,421 MSTR shares through its at-the-market programme over the same week, raising $602.8 million net of commissions.
- Bitcoin took $369.7 million of that, STRC buybacks $151.8 million, dividends on the same preferred stock $50.7 million, and $30 million went into its USD Cash account.
The story
Strategy has started buying Bitcoin again after a summer spent selling it.
The Bitcoin treasury company picked up 4,603 BTC for $369.7 million in the week to August 30, at an average of $80,318 apiece, according to a filing with the Securities and Exchange Commission.
That takes its stack to 845,050 BTC, bought for $63.73 billion at an average of $75,412.
It paid for the purchase by issuing stock. Strategy sold 4,531,421 MSTR shares through its at-the-market programme over the same week, raising $602.8 million net of commissions.
Bitcoin took $369.7 million of that, STRC buybacks $151.8 million, dividends on the same preferred stock $50.7 million, and $30 million went into its USD Cash account.
This is the biggest purchase since May 18th...
Selling low, buying higher
Strategy sold 6,948 BTC for roughly $432.5 million between May and August, working out at about $62,250 a coin. It has now bought back at $80,318, roughly 29% higher, leaving it 2,345 BTC lighter than before the selling started, with about $63 million of the difference retained in cash.
When STRC slipped below its $100 par value in June, a funding route Strategy had used to buy Bitcoin closed off, and the company built a Digital Credit Capital Framework authorising up to $1.25 billion of Bitcoin sales to cover dividends and buy back preferred shares at a discount. It resumed buying only once MSTR recovered enough to make equity the cheaper option.
The firm's dollar pots have grown alongside. The USD Reserve, ring-fenced for preferred dividends and debt interest, stood at $5.10 billion on August 30, with the unrestricted USD Cash account at $1.61 billion. Combined, the $6.71 billion puts net leverage at 0.0%, the company said.
Strategy also repurchased 1,557,177 STRC shares for $151.8 million during the week, leaving $364.8 million of the $1 billion digital credit repurchase authorisation. A separate $1 billion authorisation to buy back MSTR stock remains untouched.
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