Michael Saylor, CEO of Strategy Inc., posted an updated treasury chart featuring 117 new purchase dots and his signature phrase, “There’s always room for more orange.” The update came as the company, recognized as the largest public corporate holder of Bitcoin, continues to adjust its approach to building reserves.
STRC preferred shares drop below par
Strategy Inc. currently controls 848,000 Bitcoin, valued at $70.48 billion, representing 4.04% of all existing Bitcoin. While Saylor’s latest message showed optimism about expanding the company’s holdings, underlying market dynamics revealed a more tempered strategy in recent days.
During October 5 to 9, the company’s principal fundraising mechanism, the STRC preferred shares, slipped below their $100 par value and traded in the narrow range of $99.43 to $99.66. According to the company’s internal rules, once these shares trade below par, an automated “Buyback Zone” protocol is triggered.
In this scenario, Strategy Inc. is barred from issuing new shares to buy more cryptocurrency, redirecting its funds instead toward repurchasing its discounted securities and supporting their price. For this period, the company added zero Bitcoin via STRC financing.
Saylor’s guiding principle of “there’s always room for more Bitcoin” underscores the company’s commitment to expanding its portfolio, despite technical halts in certain financing channels.
Diversified strategies keep buying machine active
While the STRC channel remains in a defensive mode, Strategy Inc. continues to leverage other financing avenues, with total available credit lines reaching $12.69 billion. This multi-layered approach enables the company to maintain activity, even as select securities face restrictions.
At the same time, STRF, another class of preferred securities, remains robust. Trading above par at $103.98, STRF has become a crucial source of liquidity. Recently, Strategy Inc. completed a targeted purchase of 334 Bitcoin, paying $85,838 per coin, a move highlighting the company’s ability to accumulate assets independent of STRC share performance.
Mini dictionary: STRC and STRF, both are classes of preferred securities issued by Strategy Inc. STRC is typically used for Bitcoin acquisition funding but cannot be issued below its par value, whereas STRF offers an alternative vehicle when STRC conditions are not favorable.
| Security | Status | Par Value | Trading Range | BTC Purchased |
|---|---|---|---|---|
| STRC | Below par, buybacks activated | $100 | $99.43–$99.66 | 0.00 |
| STRF | Above par, funding active | $100 | $103.98 | 334 |
Profit margins and company positioning
The company’s average acquisition price for its Bitcoin holdings is $75,436. With the current Bitcoin price exceeding $83,000, Strategy Inc. is showing sizable unrealized gains. Meanwhile, the market values the company’s net assets at a modest discount, as reflected by a market net asset value (mNAV) Basic of 0.92x, although ongoing share buybacks help manage this gap.
Saylor’s recent statements make it clear that alternative financing channels are fully operational. The company’s treasury has accumulated sufficient funds and remains poised for the next round of acquisitions, regardless of short-term obstacles in key financing vehicles.
