Strategy Buys 1,665 Bitcoin for $142.7M, Raising Holdings to 847,666 BTC
Key Takeaways
- •Strategy acquired 1,665 Bitcoin for $142.7 million in the week ended Sept. 28, increasing its total holdings to 847,666 BTC.
- •The week's average purchase price of $85,681 per Bitcoin was approximately 13.6% above the company's cumulative cost basis of $75,437 per coin.
- •Strategy sold 1.47 million MSTR shares for $246.2 million in net proceeds, allocating $142.7 million to the Bitcoin purchase and $103.5 million to STRC preferred stock repurchases.
- •The company bought back 1.53 million STRC shares for $151.7 million, covering $48.1 million of that outlay from its US dollar cash holdings.
- •This week's acquisition was about 75% larger than the prior week's 950 BTC purchase and represented the second consecutive week of buying since a two-week pause.
Strategy purchased 1,665 Bitcoin for $142.7 million during the week ended Sept. 28, raising its total holdings to 847,666 BTC, according to a Sept. 28 8-K filing with the US Securities and Exchange Commission. Such filings are how the company reports its weekly Bitcoin purchases, itemizing share sales, preferred stock repurchases, and cash movements alongside each acquisition.
The company, led by Michael Saylor, acquired the Bitcoin at an average price of $85,681 per coin between Monday and Sunday. Strategy said its total Bitcoin investment reached $63.95 billion, or an average of $75,437 per Bitcoin, including fees and expenses, putting this week's purchase price about 13.6% above the company's overall cost basis.
Strategy funded the purchase through sales of its common stock. It sold 1.47 million MSTR shares for $246.2 million in net proceeds, allocating $142.7 million to the Bitcoin acquisition and $103.5 million to repurchases of its STRC preferred stock. That structure ties each week's Bitcoin buying directly to the size of the company's equity sales, with the surplus directed to preferred stock repurchases.
The company repurchased 1.53 million STRC shares for $151.7 million, an outlay slightly larger than the week's Bitcoin purchase itself. It funded the remaining $48.1 million of those repurchases from its US dollar cash holdings.
The latest Bitcoin purchase followed Strategy's acquisition of 950 BTC for $75.7 million the previous week, after the company paused purchases for two weeks. At 1,665 BTC, this week's total was about 75% higher than the prior week's, marking a second consecutive week of buying since the pause.
Strategy's “USD Cash” balance fell to $1 billion from $1.05 billion week over week after the company used $48.1 million for STRC repurchases. Its separate US dollar reserve, which is maintained to cover preferred stock dividends and debt interest, declined to $5.02 billion from $5.04 billion after the company made $22.1 million in dividend payments. Subsequent weekly filings will show whether the buying pace continues and how the company manages its remaining cash balances.
