Strategy, overseen by Michael Saylor and recognized as the largest publicly traded corporate holder of Bitcoin globally, kept acquiring Bitcoin during the prior week while allocating roughly nine times that amount toward the repurchase of its preferred stock.
As outlined in a Monday regulatory disclosure submitted to the US Securities and Exchange Commission (SEC), Strategy secured 267 Bitcoin valued at $22.1 million, paying an average rate of $82,900 per coin across the timeframe of Oct. 12 to Oct. 18, which elevates its total reserves to 848,517 BTC.
Additionally, the enterprise bought back 1.94 million shares of its Stretch (STRC) preferred stock totaling $193.1 million, alongside expanding its digital credit securities buyback limit from $2 billion up to $3 billion.
These recent operations prolong a pattern where corporate leadership allocates greater capital toward preferred stock buybacks than Bitcoin acquisitions, despite Saylor anticipating a resurgence for the Bitcoin bull market.
Strategy’s STRC buybacks continue to outpace Bitcoin purchases
Strategy financed its latest Bitcoin acquisition primarily using $22 million generated from the sale of 140,872 common shares under the MSTR ticker, while deploying pre-existing cash reserves for the STRC share buybacks.
Thus far throughout the fourth quarter, the firm has utilized $459.2 million to buy back STRC shares, which exceeds by more than six times the $72.3 million spent accumulating 851 Bitcoin during that identical timeframe.
Related: Strategy conditionally declares daily dividends as STRC hovers below $100
Formulated as a variable-rate preferred stock engineered to distribute regular dividends, STRC has previously been targeted by Strategy with announced intentions to buy back shares trading underneath their stated $100 value in order to help stabilize the stock price.
The business disclosed a USD Reserve totaling $4.83 billion to back preferred stock dividends alongside debt interest obligations, accompanied by separate USD Cash holdings valued at $447.3 million.
Saylor sees Bitcoin returning to a bull market
This heightened allocation toward STRC buybacks coincides with positive remarks expressed by Saylor regarding the future trajectory of Bitcoin during a panel appearance at the ParaFi Investor Day held on Saturday.
Saylor stated that the market is transitioning back into a bullish phase, referencing Bitcoin’s rebound past its 200-day simple moving average, which functions as a widely monitored benchmark for long-term price direction.
Restrictive trade, foreign exchange, and monetary regulations were pointed out by Saylor as headwinds facing BTC, whereas expanding institutional banking acceptance and the tokenization of traditional financial instruments were emphasized as prospective catalysts.
Prior to Monday’s opening bell on the Nasdaq, shares of MSTR rose by over 2.5% during premarket trading sessions, based on data provided by Yahoo Finance, following a Friday close down approximately 9.6% at $138.83 per share. Meanwhile, STRC equities also experienced a premarket increase of nearly 0.8% to reach $98.45 after recording a 1.8% decline on Friday.
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Originally published at https://cointelegraph.com/news/strategy-btc-22-million-buy-strc-buyback-193-million?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound.
