Cryptoupdated 51m ago2 min read
Archive photo · 30 October 2021Strategy Pauses Bitcoin Purchases, Repurchases $204.9 Million of STRC Preferred Stock
4 Western Alternative2 OtherPhoto: Shixart1985, CC BY 2.0 · Cropped for layout
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Strategy made no Bitcoin purchases or sales in the week, keeping 848,517 BTC. It repurchased $204.9 million of STRC preferred stock, about 2.07 million shares.
6 outlets told this the same way.
MSTR pause, $205M STRC
Strategy reported no bitcoin purchases or sales during the week of October 19 through 25, while the company kept its bitcoin holdings at 848,517 BTC acquired for $64.02 billion at an average price of $75,446 per bitcoin. Strategy directed its cash toward repurchasing $204.9 million of STRC preferred stock and kept a $4.83 billion cash reserve, according to a company release. Michael Saylor’s Strategy built its treasury into the largest corporate bitcoin holdings in the world through stock sales and convertible debt, using the proceeds to buy coins, but the company has paused purchases several times and directed money toward buybacks of its preferred shares.
“Strategy reported no bitcoin purchases or sales during the week of October 19 through 25.”
Strategy’s preferred dividend STRC is a preferred stock with a variable dividend designed to trade near its $100 face value, and retiring $100 of stated value for $86.52 cuts the claim by a larger amount than the cash spent. Strategy offered no timetable for resuming bitcoin buys, even as Bitcoin traded near $80,000 on Monday, October 26 after slipping below that level in early Asian hours.
Cash drawdown and buybacks
Strategy skipped Bitcoin purchases and spent $205M on STRC buybacks, with its STRC preferred stock buybacks reducing its USD Cash balance by 46% to $242.4 million.
Strategy repurchased 2.07 million shares between Monday and Friday, reporting no Bitcoin (BTC) transactions or stock sales through its at-the-market offering program, according to its Monday filing with the US Securities and Exchange Commission.
Strategy repurchased $204.9 million of its STRC preferred stock while making no Bitcoin purchases or sales during the week ended Oct. 25.
Strategy disclosed the transactions in an Oct. 26 filing with the U.S. Securities and Exchange Commission.
Strategy’s US dollar reserve remained unchanged from the previous week, at $4.83 billion, while its USD Cash balance fell around 46% to $242.4 million from $447.3 million after management used $204.9 million to repurchase STRC shares.
Saylor on X, what next
Michael Saylor announced the rounded $205 million figure on X, saying Strategy held $5.1 billion in USD assets as of Oct. 25.
“Strategy repurchased 2,068,459 STRC preferred shares worth almost $205 million.”
Executive Chairman Michael Saylor took to X to reach out to shareholders and the broader crypto community about the latest pause in Bitcoin purchases.
Strategy repurchased 2,068,459 STRC preferred shares worth almost $205 million and $956.8 million of Strategy’s preferred stock remains available under its digital credit securities repurchase program.
Strategy has paused purchases several times and directed money toward buybacks of its preferred shares, including a stretch in which it sold bitcoin after five weeks without buying.
Strategy’s preferred-stock repurchase capacity stood at $956.8 million following the latest transactions, leaving investors focused on whether Strategy resumes bitcoin purchases after the pause.