Strategy pauses Bitcoin purchases and repurchases $176 million in STRC
Strategy skipped its weekly Bitcoin purchase and spent $176.3 million repurchasing its STRC preferred stock. At the same time, the company doubled the size of its digital securities repurchase program to $2 billion.
Between August 31 and September 7, the largest corporate holder of Bitcoin repurchased about 1.8 million STRC shares. The figures were disclosed in a Strategy filing submitted to the U.S. Securities and Exchange Commission (SEC) on September 8.
The company made no new Bitcoin purchases during the period. Its holdings remained at 845,050 BTC, acquired for approximately $63.6 billion at an average price of $75,412 per coin.
A week earlier, Strategy resumed accumulating the leading cryptocurrency for the first time since mid-June, buying about $370 million worth of Bitcoin.
Strategy doubles repurchase program
Alongside the STRC purchases, the company increased its Digital Credit Securities Repurchase Program from $1 billion to $2 billion. The program allows Strategy to repurchase its own preferred securities.
STRC is one of the instruments through which the company raises capital, including to fund its Bitcoin strategy. However, the shares continue to trade below their par value.
In premarket trading on September 8, STRC was trading at around $97.70, or 2.3% below its targeted $100 par value. Strategy's common stock (MSTR) was down more than 3%.
Trading below par limits Strategy's ability to raise capital by issuing additional securities of this class. The company may also be forced to increase the yield to maintain investor demand.
In June, Strategy introduced a new capital management framework that allows it to sell Bitcoin to fund dividend payments. At the same time, the annual dividend rate on STRC was raised to 12%.
Other companies continue buying Bitcoin
Strategy's pause came as other public companies continued accumulating the leading cryptocurrency.
Japan's Remixpoint recently sold all of its Ethereum, Solana, XRP and Dogecoin holdings for ¥878.8 million ($4.47 million), leaving Bitcoin as the only digital asset in its reserve. The altcoin sales generated a profit of ¥117.8 million ($598,400).
Meanwhile, Strive acquired 1,375 BTC for approximately $109 million at an average price of $79,281. The purchase increased its holdings to 24,531 BTC.
France's Capital B also reported a $25 million Bitcoin purchase, its largest in almost a year.
Earlier, Strategy accused MSCI of attempting to push companies with Bitcoin reserves out of its indexes. The company called the index provider's proposed criteria discriminatory and urged MSCI to withdraw them.
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