Strategy Adds 1,665 BTC, Holdings Hit Record 847,666 Bitcoin
Strategy has increased its Bitcoin holdings to a new record after purchasing another 1,665 BTC, while continuing to allocate capital toward buybacks of its preferred stock.
The company spent $142.7 million on the latest Bitcoin purchase at an average price of $85,681 per BTC, according to a Monday filing with the U.S. Securities and Exchange Commission. Strategy now holds 847,666 BTC, acquired for a total of $63.95 billion at an average cost of $75,437 per Bitcoin.
The latest addition moves Strategy above its previous record of 847,363 BTC, which was reported on June 22. The company reduced its Bitcoin holdings during the summer before returning to purchases in August.
Strategy funded the latest acquisition through proceeds from its at-the-market MSTR stock offering. During the week, the company sold 1.47 million shares of its common stock and received $246.2 million in net proceeds.
Of that amount, $142.7 million was directed toward Bitcoin purchases, while another $103.5 million was used to repurchase preferred stock.
Strategy also bought back 1.53 million shares of its Variable Rate Series A Perpetual Stretch Preferred Stock, traded under the STRC ticker, for approximately $151.7 million.
The company has been increasing its STRC buybacks as the preferred shares have traded below their stated value. Strategy said $723.5 million remains available under its digital credit securities repurchase program.
The latest capital allocation comes as Strategy continues to adjust how it manages its Bitcoin holdings, preferred-stock obligations and cash reserves. The company recently proposed daily dividend accruals for several preferred-stock series, including STRF, STRC, SREK and STRD, as part of an effort to reduce volatility in those securities.
Strategy had spent much of the summer reducing its Bitcoin exposure and increasing its dollar reserves. Previous disclosures show the company sold 6,948 BTC between May and August before restarting its accumulation.
As of the latest filing, Strategy held $6.02 billion in dollar assets, consisting of a $5.02 billion USD Reserve and $1 billion in USD Cash.
The USD Reserve is designated for preferred-stock dividends and interest payments on debt, while the separate USD Cash balance can be used for Bitcoin purchases, increasing the reserve or other capital-management needs.
During the latest week, Strategy used $48.1 million from its USD Cash balance for STRC repurchases and $22.1 million from its USD Reserve to cover preferred-stock dividends.
With Bitcoin holdings at a record level and billions of dollars in dollar assets available, Strategy continues to balance BTC accumulation with preferred-stock buybacks and other capital-allocation needs.