Strategy, the business intelligence company led by Michael Saylor and the world’s largest publicly traded corporate holder of Bitcoin, has made another Strategy Bitcoin purchase while spending far more on buying back its own preferred stock. Between October 12 and October 18, the company bought 267 Bitcoin for $22.1 million at an average price of $82,900, bringing its total holdings to 848,517 BTC, according to a Monday filing with the U.S. Securities and Exchange Commission.
Why is Strategy spending more on stock buybacks than Bitcoin?
The numbers show a clear shift in priorities this quarter. Strategy has spent $459.2 million repurchasing shares of STRC, its variable-rate preferred stock, compared to $72.3 million spent acquiring 851 Bitcoin over the same period — nearly nine times as much on buybacks as on new Bitcoin. STRC pays regular dividends, and Strategy has said it aims to buy back shares when they trade below their $100 stated value to support the price.
The latest Bitcoin purchase was funded mainly through $22 million raised by selling 140,872 shares of Strategy’s common stock, ticker MSTR, while the STRC repurchases came from existing cash. The company reported a $4.83 billion USD Reserve set aside to cover preferred stock dividends and debt interest, plus $447.3 million in separate USD Cash holdings.
What does Saylor see coming for Bitcoin?
Despite the heavier focus on stock buybacks, Saylor sounded upbeat about Bitcoin’s price outlook. Speaking at ParaFi Investor Day on Saturday, he said, “We’re moving back into a bull market,” citing Bitcoin’s recovery above its 200-day simple moving average, a measure traders watch for longer-term price trends.
Saylor pointed to restrictive trade, foreign, and monetary policies as potential headwinds for Bitcoin, while naming growing bank adoption and the tokenization of traditional financial assets as factors that could push prices higher. For now, every Strategy Bitcoin purchase continues to add to its already massive stockpile, even as the company balances that strategy with shoring up its preferred stock.
المصدر: Cointelegraph
