Strategy, the Bitcoin treasury company formerly known as MicroStrategy, bought 1,665 Bitcoin for roughly $142.7 million between September 21 and September 27, lifting its holdings to 847,666 BTC. The purchase widens the gap between the firm and every other publicly traded holder of the cryptocurrency. Strategy disclosed the transaction in a Form 8-K filed with the U.S. Securities and Exchange Commission on September 28. It is the second consecutive week in which the company has added to its Bitcoin reserve.
A purchase funded by share sales
The acquisition was paid for entirely with proceeds from Strategy’s at-the-market offering program, through which the company sells common stock gradually at prevailing market prices. During the week it sold 1,469,165 shares of Class A common stock under the ticker MSTR, generating $246.2 million in net proceeds. Of that total, $142.7 million went toward Bitcoin at an average price of $85,681 per coin, including fees and expenses, while the remaining $103.5 million was directed to repurchasing preferred stock. The per-coin price sits well above the company’s all-in blended cost of $75,437 per Bitcoin, and roughly $18.84 billion of MSTR shares remain available for issuance under the program.
Treasury climbs past 847,000 BTC
The purchase lifts Strategy’s aggregate holdings to 847,666 Bitcoin as of September 27, acquired at a total cost of $63.95 billion and an average price of $75,437 per coin. That position now represents more than 4% of Bitcoin’s hard-capped supply of 21 million coins, cementing the firm’s status as the largest corporate holder of the asset. It follows a 950 Bitcoin purchase in mid-September, the company’s first acquisition after a pause in buying that had stretched back to August.
A parallel preferred-stock buyback
Alongside the Bitcoin purchase, Strategy repurchased 1,534,530 shares of its STRC preferred stock for $151.7 million, using $103.5 million in MSTR sale proceeds plus $48.1 million from its USD Cash balance. STRC, marketed as the company’s variable-rate “Stretch” preferred security, is one of several instruments Strategy uses to raise capital for Bitcoin buying. The company also drew $22.1 million from its USD Reserve, which exists to cover preferred-stock dividends and interest on outstanding debt, leaving the reserve at $5.02 billion and USD Cash at $1.00 billion as of September 27. The buyback runs alongside the company’s proposal to move four preferred securities to daily dividends, which shareholders are set to vote on October 28.
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