Key Takeaways:
- Strategy bought 4,603 bitcoin for $369.7 million, its first purchase since June 22nd
- Only 61 percent of $602.8 million raised from share sales went to bitcoin
- Prediction markets price 84 percent odds STRC hits $100 by Dec. 31
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Strategy buys $370 million of bitcoin as Saylor resumes buying
Strategy bought 4,603 bitcoin for $369.7 million at an average price of $80,318 per coin, its first purchase since June 22nd and the resumption of a treasury program that had shifted toward cash accumulation.
The purchase was funded by selling 4.53 million newly issued MSTR shares, which raised $602.8 million. Only about 61 percent of those proceeds went to bitcoin; the rest supported the company's preferred stock structure. Strategy repurchased $151 million of STRC shares, paid $50.7 million in STRC dividends and added $29 million to its USD cash reserve, according to a Monday filing with the Securities and Exchange Commission.
"Strategy is evolving from one-way capital issuance to active capital management," Chief Executive Officer Phong Le said in June. "We intend to move between issuing securities when capital is attractive and repurchasing securities when our instruments trade at levels that make buybacks accretive."
The company now holds 845,050 bitcoin acquired for $63.73 billion at an average price of $75,412, making it the world's largest corporate holder of the cryptocurrency. It also holds $5.1 billion in its USD Reserve and $1.61 billion in a new USD Cash reserve. STRC, the firm's perpetual preferred stock paying 12 percent annual dividends, traded at $96.66 on Monday, below its $100 par value.
The share issuance diluted existing holders by 1 percent this week and 6 percent over the past three weeks, a trade-off Saylor has accepted to support STRC and fund further bitcoin accumulation. Prediction markets now price an 84 percent chance STRC reaches $100 by Dec. 31, up from 66 percent a week ago. Bitcoin traded at $77,821 on Monday morning in New York, down from a weekly high of $81,281, after jumping more than 24 percent over the past 30 days. MSTR shares are down nearly 20 percent year-to-date.
Chairman Michael Saylor has defended the company's selling activity, saying his "never sell your bitcoin" stance applied only to his personal wallet. "Strategy is a public company, not my wallet," he said on X. "Since 2020, it has disclosed it may buy or sell bitcoin to manage capital."
This article is for informational purposes only and does not constitute investment advice.
