Strategy reaches new BTC reserve record with almost $300M splurge on BTC, STRC

Strategy (NASDAQ: MSTR) has recovered all of the Bitcoin it sold and pushed its reserves to new record levels after paying $142.7 million for 1,665 BTC over the last week. The firm’s SEC filing also confirmed that it spent another $151.7 million repurchasing its own STRC preferred stock.

The purchase disclosed in the 8-K filed with the Securities and Exchange Commission (SEC) for the week ended September 27 shows that Strategy now holds a record 847,666 BTC, a number higher than the amount it held before it began selling some of its reserves to balance its books.

Strategy sets a new Bitcoin record

Strategy now holds 847,666 BTC, the highest amount of tokens ever attributed to a single publicly traded entity, after the Saylor-led company added 1,665 BTC for $142.7 million, paying an average of $85,681 per token.

The new figure is north of the 847,363 BTC Strategy held at its previous peak on June 22 before it announced a few rounds of token sales over the summer. The firm resumed buying BTC again in August.

Overall, the firm’s Bitcoin stash cost $63.95 billion to build at an average cost of $75,437 per token. The stash is currently valued at roughly $70.6 billion, about $6.6 billion above cost basis.

Bitcoin was trading near $83,400 as the filing hit, down about 1.4% on the day.

Strategy funded last week’s BTC splurge with equity, raising $246.2 million in net proceeds after selling 1,469,165 MSTR shares through its at-the-market program. The firm split the raise into two purchase tranches:

• $142.7 million went to Bitcoin
• $103.5 million went to STRC preferred-stock buyback

Strategy is still buying STRC

The other half of the roughly $294 million that Strategy spent last week went to the preferred stock. The firm repurchased 1,534,530 shares of its Variable Rate Series A Perpetual Stretch Preferred, ticker STRC, for $151.7 million. It covered that with the $103.5 million from MSTR sales plus $48.1 million drawn from its USD Cash balance.

The buybacks are meant to lift STRC back toward its stated $100 par value, which the security has traded below.

After the spending, USD Cash slipped to $1 billion, and the separate USD Reserve stood at $5.02 billion, the latter down after $22.1 million in preferred dividends. Strategy said $723.5 million remains available under its digital credit securities repurchase program.

Daily-dividend vote ahead

The buyback is one prong of a wider push to stabilize the preferreds. On September 25, Strategy proposed switching STRC, STRD, STRF, and STRK to daily dividends, Cryptopolitan reported.

Common stockholders vote on October 28; preferred holders get no say. If approved, STRC moves first, with a record date on November 1 and the first daily payment on November 2. The coupon rates and total dividend obligations do not change.

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