Strategy, Michael Saylor’s company known for its aggressive Bitcoin investment strategy, added 1,665 BTC to its balance sheet last week, spending $142.7 million. The acquisition increased its total Bitcoin holdings to 847,666 BTC, reinforcing its position as the largest corporate Bitcoin holder.
Latest Bitcoin purchase and funding details
The company acquired the new Bitcoin at an average price of $85,681 per coin between Monday and Sunday. Strategy disclosed this information in an 8-K filing submitted to the US Securities and Exchange Commission on September 28. Including fees and expenses, Strategy has now invested a total of $63.95 billion in Bitcoin, with an average acquisition price of $75,437 per Bitcoin.
To finance this purchase, Strategy sold approximately 1.47 million shares of its common stock, generating net proceeds of $246.2 million. Out of this total, $142.7 million was allocated to the Bitcoin purchase, while $103.5 million was used for the repurchase of its STRC preferred stock.
The company also repurchased 1.53 million STRC preferred shares, spending $151.7 million on the buyback. This sum included $103.5 million from the recent stock sale proceeds and $48.1 million drawn from Strategy’s US dollar cash reserves.
In the week prior, Strategy had acquired 950 BTC for $75.7 million after a brief two-week pause in Bitcoin purchases, signaling a return to its established buying pattern.
Cash balances and financial position
Following these transactions, Strategy’s “USD Cash” reserves declined from $1.05 billion to $1 billion. This decrease resulted from the $48.1 million allocated to the STRC share repurchase. In addition, the company’s separate US dollar reserve—maintained specifically to cover preferred stock dividends and interest on debt—stood at $5.02 billion after Strategy reportedly paid $22.1 million in dividends, down from $5.04 billion the previous week.
Strategy has spent $63.95 billion on its Bitcoin holdings at an average cost of $75,437 per BTC, according to its filing with the US Securities and Exchange Commission.
Mini dictionary: Strategy, led by Michael Saylor, is a publicly traded firm recognized for making Bitcoin a primary treasury asset. The company frequently raises capital through share offerings and other means to accumulate additional Bitcoin.
Shareholder proposals and dividend practices
Strategy has proposed a move to distribute preferred stock dividends to its shareholders on a daily basis, aiming to provide more flexible and timely returns. The company is currently seeking approval from its shareholders to implement this approach.
| Action | Amount ($ million) | Source of funds |
|---|---|---|
| BTC purchase (1,665 BTC) | 142.7 | Stock sale proceeds |
| STRC preferred share repurchase | 151.7 | Stock proceeds & cash reserves |
| Dividends paid | 22.1 | US dollar reserve |
