Strategy Inc. bought no Bitcoin (BTC) during Oct. 19-25 and spent $204.9 million repurchasing preferred shares under a program intended to reduce its future dividend costs.
In its Oct. 26 filing, the company reported buying 2,068,459 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) with funds it calls USD Cash. It reported no Bitcoin sales or sales of shares through its at-the-market offering program during the same period.
The week without a Bitcoin purchase followed three consecutive reporting periods with acquisitions. Strategy bought 334 BTC during Oct. 1-4, 250 during Oct. 5-11 and 267 during Oct. 12-18, according to its earlier disclosures. Its Oct. 19 filing also recorded $193.1 million in STRC repurchases during the preceding week, detailed in EconoTimes’ earlier report on the buyback.
Strategy said it held approximately 848,517 BTC as of Oct. 25. It put the acquisition cost of those holdings at $64.02 billion, including fees and expenses, for an average of approximately $75,446 per BTC. The Oct. 26 filing reported activity for one week; it did not announce a longer halt to purchases.
After the latest buyback, Strategy reported $242.4 million in USD Cash and a separate $4.83 billion USD Reserve. The reserve is intended to support preferred-stock dividends and interest on debt. The company said $956.8 million remained available under its digital credit securities repurchase program. Its board raised the program’s authorization from $2 billion to $3 billion on Oct. 19.
Strategy said in July that it intended to repurchase STRC when it traded below its $100 stated amount, subject to market conditions and available funds. President and CEO Phong Le said buying the shares at a discount could lower future dividend costs. The approach uses cash now to reduce those obligations later.
Strategy is scheduled to release third-quarter results after U.S. markets close Thursday, Oct. 29, followed by a webinar at 5 p.m. ET.
