Strategy Buys Bitcoin Again After Recovery to $84,500
The purchase was funded by selling common stock, while Strategy also bought back STRC preferred stock. MSTR rose along with bitcoin, which recovered above $84,000.
Key Takeaways
- Strategy bought 950 bitcoin last week for $75.7 million at an average price of $79,670 per coin.
- The purchase was funded by selling $80.1 million in common stock and buying back $174 million in STRC preferred stock.
- Strategy now holds 846,000 BTC; bitcoin rose to about $84,500 on Monday and MSTR gained 7% in premarket trading.
Strategy bought bitcoin again last week, for the first time since late August. The company bought 950 BTC for $75.7 million (€66.1 million) at an average price of $79,670 (€69,500) per coin, while bitcoin itself pulled back to a recovery above $84,000 (€73,300).
Funding Through Stock
The purchase was funded by the sale of $80.1 million (€69.9 million) in common stock, according to a regulatory filing on Monday. Strategy used the remaining proceeds to buy back $174 million (€152 million) in STRC preferred stock and strengthen its cash position.
Under executive chairman Michael Saylor, Strategy now holds 846,000 BTC. The company has paid a total of $63.81 billion (€55.7 billion) for that, which works out to an average purchase price of $74,417 (€64,900) per coin.
Bitcoin and MSTR Move Together
The bitcoin price was around $84,500 (€73,700) on Monday, up 4.5% in 24 hours. That came alongside a 7% jump for MSTR in premarket trading.
For European crypto followers, this matters because Strategy still holds one of the largest publicly traded bitcoin positions in the world. That makes the company an important gauge for how stock investors view bitcoin as a balance sheet asset, especially now that the price is moving back above recent levels.
Earlier Sale in July
The new purchase follows a notable turn earlier this year. In July, Strategy sold 3,588 BTC for $216 million (€188 million) to pay preferred stock dividends and top up cash reserves. That shows the company is not only expanding its bitcoin position, but also actively using it within the broader financing of the business.
Strategy's funding mix is still shifting too: the company had already built a larger dollar buffer around its bitcoin strategy, as seen in the cash buffer around Bitcoin.
