Michael Saylor’s enterprise, Strategy, which holds the largest corporate Bitcoin treasury, bypassed its regular weekly Bitcoin purchase in order to buy back $176 million worth of its STRC preferred shares.
Between August 31 and September 7, Strategy bought back 1.8 million STRC equities for a combined total of $176.3 million, as revealed in a Tuesday filing submitted to the Securities and Exchange Commission in the United States.
Additionally, the firm expanded the cap of its Digital Credit Securities Repurchase Program to $2 billion, doubling its previous size. Because no fresh acquisitions were made, Strategy’s total reserves remain at 845,050 Bitcoin (BTC), secured at an aggregate expense of $63.6 billion and an average buy-in cost of $75,412 per coin.
During the preceding week, Strategy completed its initial BTC acquisition since the middle of June, which involved a $370 million investment.
Although the price of STRC remained fairly stable during premarket trading hours on Tuesday at $97.70—reflecting a 2.3% discount relative to its nominal $100 par value—the organization’s MSTR common stock, traded on the Nasdaq, fell by over 3% during final observations, according to data from Yahoo Finance.
As STRC functions as a primary mechanism for Strategy to finance its ongoing Bitcoin accumulation, trading below its par value restricts the firm’s capacity to generate capital via STRC issuances and could compel the enterprise to raise its dividend yield further.
On June 29, Strategy introduced a capital structure permitting the liquidation of Bitcoin holdings to cover dividend obligations, alongside elevating the yearly dividend percentage on its STRC preferred stock to 12%.
Related: Standard Chartered wavers on $100K Bitcoin year-end call, says it may be ‘too low’
BTC treasury challenger Strive steps purchases
While Strategy chose to temporarily suspend its Bitcoin accumulation last week, leadership at other firms accelerated acquisitions of the leading cryptocurrency by market capitalization.
Strive, operating as the fifth-largest corporate Bitcoin reserve holder, secured 1,375 Bitcoin at a valuation of $109 million with an average price tag of $79,281 per BTC, elevating its aggregate holdings to 24,531 Bitcoin, as announced by CEO Matt Cole on Monday. Prior to Tuesday’s opening bell, the corporation’s ASST shares on the Nasdaq dropped by more than 2.5%, following a surge that saw them more than double over the past month.
In addition, France-based corporate Bitcoin holder Capital B disclosed a $25 million Bitcoin purchase on Monday, marking its largest acquisition in close to a year, which advanced the French entity past the H100 Group among publicly listed BTC asset holders.
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