Strategy Buys 1,665 Bitcoin for $143M, BTC Holdings Reach 847,666
Michael Saylor’s company Strategy purchased 1,665 bitcoins last week for $142.7 million, bringing its total holdings to 847,666 BTC. The purchase was financed by selling common shares of the company. The average price per bitcoin was $85,681, while Strategy's total expenditure on its bitcoin holdings has reached nearly $64 billion.
Details of Bitcoin Purchase and Funding
According to an SEC 8-K filing submitted by Strategy on September 28, the company bought 1,665 bitcoins between Monday and Sunday at an average price of $85,681 per coin.
The purchase was financed by selling 1.47 million common shares, resulting in net proceeds of $246.2 million. Of this, $142.7 million was allocated to Bitcoin acquisition, while the remaining $103.5 million was used to repurchase the STRC preferred stock.
Stock Transactions and Cash Reserves
Strategy repurchased 1.53 million STRC shares for $151.7 million, additionally utilizing $48.1 million from its US dollar cash holdings.
The company's USD cash balance decreased from $1.05 billion to $1 billion following the STRC share buybacks. A separate US dollar reserve, maintained for preferred stock dividends and debt interest payments, also declined from $5.04 billion to $5.02 billion due to dividend payments totaling $22.1 million.
In the week prior, Strategy purchased 950 bitcoins for $75.7 million after a two-week halt.
Why it matters
This news highlights Strategy's active approach to accumulating bitcoin assets under Michael Saylor's management. Financing new purchases through selling its own shares signals strong confidence in bitcoin's potential. The regular acquisitions and financial maneuvers demonstrate the company's solid market position, potentially influencing bitcoin's perception as an institutional investment asset and affecting the broader cryptocurrency market.
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