Strategy pauses Bitcoin purchases and buys back $205M in STRC shares

Strategy announced that during the week from October 19 to 25, it did not make any Bitcoin purchases or sales. Instead of increasing its cryptocurrency portfolio, the company used available funds to repurchase its STRC preferred shares. The operation was described as the largest weekly transaction in over a month, with total spending indicated by Bitcoin Magazine and Unchained at $204.9 million, a figure reported rounded to $205 million by Decrypt and Cointelegraph.

Why it matters

This move signals a shift in priorities in corporate treasury management. STRC shares are designed to trade near their nominal value of $100; by repurchasing them at lower prices, the company reduces preferred liabilities relative to cash spending, increasing net Bitcoin per common share. The board of directors also increased the limit on the preferred stock buyback program from $2 billion to $3 billion, expanding future repurchase capacity. The company did not sell common shares through the ATM program during the week in question, after doing so the previous week to finance the purchase of 267 BTC.

The numbers

The USD cash balance fell from $447.3 million on October 18 to $242.4 million on October 25, a reduction of 46%. The company maintains total dollar reserves declared by Michael Saylor at $5.1 billion, of which $4.83 billion is classified as USD Reserve. Strategy’s Bitcoin portfolio remains unchanged at 848,517 BTC, with an average acquisition cost of $75,446 per coin and a combined total cost of $64.02 billion. In detail on the repurchases, 2,068,459 STRC shares were purchased. The price of Bitcoin was $80,000 on Monday, October 26, touching a low of $79,000 during the weekend.

What remains to be understood

No specific calendar or timeline has been provided for resuming Bitcoin purchases. Furthermore, on October 28, common shareholders will vote on the conversion of daily dividends for STRC and three other US-listed preferred shares, a decision that could further influence the company’s capital structure.

Sources: Decrypt, Cointelegraph, Bitcoin Magazine, Unchained.

For more updates, read the other crypto and finance news; on the same topic also «MSCI: new rules exclude Strategy and Metaplanet from global indices» and the latest HWReady news.

This article is for informational purposes only and does not constitute financial advice or an investment recommendation.

* Content created with the assistance of artificial intelligence systems.