- Strategy kept its Bitcoin portfolio at 845,050 BTC after skipping another purchase over the past week.
- Meanwhile, it continued its STRC repurchase program, buying $176.3 million worth of preferred shares during the same period.
After announcing a $370 million Bitcoin (BTC) purchase last week, Strategy (MSTR) once again paused its acquisition of the premier crypto asset. Over the past week, it has repurchased more shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC).
Strategy’s Bitcoin Holdings
To date, Strategy remains the largest public company by Bitcoin holdings. It currently holds 845,050 BTC, accounting for roughly 4.21% of Bitcoin’s 20.08 million circulating supply.
So far, the company has an aggregate purchase price of approximately $63.73 billion for its Bitcoin treasury at an average cost of $75,412. At the asset’s recovery between $77,666.41 and $79,463.28 per unit, the business is once again sitting at an unrealized gain on its Bitcoin bet, albeit by a virtually narrow margin per coin.
At this rate, Strategy is $1.9 billion to $3.42 billion up in its BTC investment.
STRC Repurchase
Over the same period, Strategy repurchased about 1.81 million STRC shares. The transaction cost $176.3 million.
The move aligns with the company’s Digital Credit Capital Framework. The initiative aims to strengthen its Bitcoin-buying capacity while adding value for shareholders.
Interestingly, Strategy neither sold any of its Bitcoin holdings nor MSTR common shares to fund the STRC repurchase. Instead, it utilized cash set aside during past stock offerings.
Currently, Strategy has a $5.1 billion USD reserve, providing liquidity for preferred stock dividends and debt interest payments. With $1.67 billion in annualized obligations to stockholders out of its $6.71 billion debt, the company can cover up to 3.9 years of dividend and interest payments without touching its BTC holdings or other assets.
In addition, Strategy keeps a separate $1.44 billion in cash and cash equivalents. The amount serves as dry powder for Bitcoin purchases under favorable market conditions.
Strategy’s Goal
A Strategy announcement has never been complete without Peter Schiff, Chair and Founder of SchiffGold, breathing down Strategy Executive Chairman and Co-Founder Michael Saylor’s neck. In his latest ramblings in response to the Bitcoin development company’s recent move, the veteran gold investor questioned the purpose of the business pushing STRC back to $100 if it won’t be able to issue more. He claimed that there’s clearly not enough demand for the preferred stock, even at a 12% dividend.
Moreover, Schiff pointed out that if Strategy sells, STRC’s price would drop again and it would be forced to execute more buybacks. Meanwhile, simply ending the buyback will cause the price to drop.
Clearly, Schiff is ignoring the fact that Strategy’s STRC repurchases are a deliberate mechanism for it to retire high-cost preferred dividend obligations at a discount. The logic behind it is to optimize the business’s capital structure rather than merely managing short-term market sentiment.
