Strategy makes first back-to-back Bitcoin buys since June as accumulation picks up

Michael Saylor’s Strategy (previously known as MicroStrategy) has executed back-to-back weekly Bitcoin acquisitions for the initial time since June, rebuilding its reserves following sales earlier in the current quarter.

On Sept. 28, the enterprise disclosed that it purchased 1,665 Bitcoin for $142.7 million during the week concluding Sept. 27, executing an average price of $85,681 per token. This followed a prior purchase of 950 BTC for $75.7 million the preceding week, breaking a three-month period devoid of consecutive weekly buys.

The most recent acquisition was roughly 75% larger than the preceding week’s transaction, indicating a resurgence in accumulation following months where Strategy alternated between purchases, pauses, and intermittent liquidations.

Strategy Bitcoin holdings reach new ATH

Those liquidations had previously driven Strategy’s quarterly Bitcoin accumulation into negative territory. The two latest purchases have reversed that decline, leaving the organization with a net addition of 1,666 BTC during the third quarter with three trading days remaining.

Mark Harvey, a Bitcoin analyst, noted that Strategy has now repurchased all the Bitcoin it liquidated during the quarter alongside additional amounts, extending its uninterrupted sequence of quarters featuring net Bitcoin growth to 24.

This renewed acquisition activity has elevated Strategy’s total reserves to a record 847,666 BTC, secured for approximately $63.9 billion at a mean price of $75,437. The firm has integrated 175,166 BTC into its balance sheet throughout the year to date.

Valued currently at roughly $70.7 billion, these holdings reflect an unrealized profit of approximately $6.75 billion, representing 10.6% over the aggregate purchase expenditure of Strategy.

Concurrently, the performance metrics of Strategy indicate a year-to-date Bitcoin yield of -3.7% and a negative BTC Gain amounting to 25,085 BTC, equating to roughly -$2.1 billion based on reporting prices. Its quarterly BTC Gain rests at -100,275, valued at approximately -$8.37 billion.

Strategy funded these recent acquisitions through its at-the-market common-stock initiative. The corporation disposed of roughly 1.47 million MSTR shares last week, generating $246.2 million in net proceeds and preserving another $18.84 billion in issuance capacity within the framework of the program.

Zaid, an MSTR analyst, anticipated that Strategy would allocate between $250 million and $300 million toward Bitcoin purchases over the week, nearly double the capital ultimately deployed. He explained that the smaller volume reflected management’s choice to allocate capital elsewhere rather than depending more heavily on corporate cash reserves.

That alternative destination was STRC.

Strategy steps up support for STRC

Strategy bought back roughly 1.53 million shares of its Variable Rate Series A Perpetual Stretch preferred stock for $151.7 million during the previous week, marginally surpassing the $142.7 million expended on Bitcoin acquisitions.

The enterprise financed the STRC repurchases utilizing $103.5 million derived from MSTR equity sales alongside another $48.1 million from its USD Cash balance. Additionally, it allocated $22.1 million from its USD Reserve to fulfill preferred-stock dividend obligations.

Consequently, Strategy retained approximately $1 billion in general-purpose cash and $5 billion inside its distinct USD Reserve as of Sept. 27.

Zaid estimated that last week’s STRC buybacks accounted for approximately 18.9% of the asset’s aggregate trading volume, dropping from 22.8% the prior week. He characterized this decline as a marginal positive development because Strategy was required to absorb a diminished fraction of market selling pressure to stabilize the instrument.

This market intervention appears effective. STRC has climbed to approximately $99, approaching its nominal $100 par value following months of transacting beneath that threshold.

The preferred asset has fought to sustain par value since May, plunging as low as approximately $71 during the June Bitcoin market contraction. Strategy has subsequently dedicated in excess of $1 billion to repurchase preferred shares via a $2 billion initiative aimed at stabilizing the security.

STRC currently distributes a 12% annual dividend, having accelerated its payment frequency from monthly to bi-monthly in June. Strategy is presently advancing an additional modification to render the security more appealing to income-focused investors.

The corporation scheduled a special shareholder meeting for Oct. 28 to pursue authorization for daily dividend distributions across its four US-listed preferred instruments, which comprise STRC, STRF, STRK, and STRD.

Subject to approval, STRC would pioneer the transition, with its initial daily-schedule payout anticipated on Nov. 2 for shareholders of record as of Nov. 1.

Daily accruals might diminish the duration investors must wait to acquire and reinvest earnings, simultaneously softening price volatility that tends to accumulate around less frequent dividend distribution milestones. Strategy has noted that sustaining STRC market values near $100 remains a primary objective of the proposed framework.

This sets up two key benchmarks to monitor as the quarter concludes. Strategy has reinstated sequential Bitcoin purchases while maintaining substantial cash and equity issuance capabilities, whereas STRC has rebounded to within roughly 1% of its nominal value following months of corporate intervention.

Subsequent disclosures will reveal whether management prolongs its Bitcoin acquisition streak into a third consecutive week and whether the synergy of buybacks and planned daily dividends can successfully propel STRC back to par without compelling Strategy to absorb such a substantial proportion of its daily volume.

Frequently Asked Questions

• Why did Strategy resume back-to-back Bitcoin purchases? Strategy resumed consecutive weekly acquisitions to rebuild its holdings after selling portions of its cryptocurrency earlier in the quarter, ultimately reversing its net decline in quarterly accumulation.
• How much Bitcoin does Strategy currently hold? Strategy’s holdings have reached a record 847,666 BTC, acquired for roughly $63.9 billion at an average price of $75,437.
• What is Strategy doing with its STRC preferred stock? Strategy is actively repurchasing shares and proposing daily dividend payments to help stabilize the security near its $100 stated value.