Strategy buys 334 BTC while prioritizing STRC buybacks

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Strategy buys 334 BTC

Highlights

Strategy bought 334 Bitcoin for $28.7 million.
STRC buybacks totaled $176.3 million.
Strategy now holds exactly 848,000 Bitcoin.

The Bitcoin purchase increased Strategy holdings to exactly 848,000 BTC and marked its third consecutive week of acquisitions, although it was only about one-fifth the size of the previous week's 1,665 BTC purchase. Strategy bought roughly 1.77 million shares of its Stretch preferred stock, or STRC, during the same period, directing about six times as much capital toward those repurchases as toward Bitcoin, BeInCrypto reported.

STRC takes priority in cash spending

The difference is clearest in how Strategy financed the transactions. It used $154.1 million from USD Сash for STRC repurchases but only $13 million from the same pool for Bitcoin. Another $15.7 million used for Bitcoin purchases came from the sale of 92,894 new MSTR common shares.

STRC currently pays a 12% annual dividend. Strategy has been using repurchases as part of an effort to keep the preferred stock trading near its $100 issue price, making the security an increasingly important part of its capital structure.

That does not mean Strategy has stopped accumulating Bitcoin. The latest purchase extends its buying streak, but the allocation shows that maintaining its preferred financing instruments is competing directly with Bitcoin for capital.

Bitcoin rebound produces a large quarterly gain

Strategy estimated a $20.91 billion third-quarter gain on its Bitcoin holdings after the cryptocurrency recovered from its June levels. The improvement also allowed the company to reverse a $4.12 billion tax asset associated with an earlier decline in the value of its Bitcoin.

At a Bitcoin price of about $86,138, the company holdings are worth roughly $72.4 billion. Strategy has spent a total of $63.97 billion acquiring its Bitcoin, putting its average purchase price at $75,441 per coin.

Its liquidity extends beyond Bitcoin. Strategy reported a $4.88 billion USD reserve earmarked for dividends and interest, along with $833.4 million in USD Cash.

Capital management becomes part of the Bitcoin strategy

The latest transactions show that Bitcoin accumulation is no longer the only major claim on Strategy capital. Preferred-stock dividends and the effort to keep STRC trading near its intended level now require substantial resources of their own.

That makes the durability of Strategy financing structure increasingly relevant to its ability to keep expanding its Bitcoin position. The company is still buying Bitcoin, but its latest allocation shows that maintaining the securities used to finance that strategy can take priority over adding more coins.

We also reported Metaplanet increases Bitcoin holdings to 44,000 BTC.

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