Strategy now owns more bitcoin than it did before it started selling coins in late June. The company disclosed in a Form 8-K on Monday that it bought 1,665 BTC for $142.7 million between Sept. 21 and Sept. 27, at an average of $85,681 a coin including fees, its second purchase in as many weeks.
The buy lifted holdings to 847,666 BTC, just above the 847,363 BTC Strategy reported as of June 21. Between June 29 and Aug. 9, the company sold a combined 6,916 BTC, according to filings on July 6, Aug. 3 and Aug. 10. It used the proceeds to fund preferred dividends, refill its dividend reserve and buy back its STRC preferred stock. The full stack cost $63.95 billion, or $75,437 a coin on average, and last week’s average purchase price was about 14% above that level.
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Stock Sales Resume
Last week’s bitcoin was paid for with Strategy’s MSTR Class A shares, sold through its at-the-market program. The company sold 1,469,165 shares for $246.2 million in net proceeds and split the money two ways: $142.7 million for bitcoin and $103.5 million to repurchase STRC.
Strategy had not sold MSTR since the week of Aug. 24 to Aug. 30, when it raised $602.8 million and put $369.7 million of it toward 4,603 BTC, its first purchase since June. It bought nothing in the next two weeks, then added 950 BTC for $75.7 million in the Sept. 14 to Sept. 20 period, paying from its USD Cash account.
STRC Buybacks Near Par
The STRC repurchases covered 1,534,530 shares for $151.7 million, about $98.86 a share. That compares with roughly $98.24 the week before and $97.36 in the week ended Sept. 7. Management has said it will recommend that the board keep STRC’s dividend at 12% a year “until STRC has demonstrated sustained, healthy trading near $100 per share.”
Strategy also drew $48.1 million from USD Cash for the buybacks, leaving $723.5 million of a repurchase authorization it doubled to $2 billion this month. USD Cash ended the week at $1.00 billion, down from $1.59 billion when Strategy set up the account in late August.
Strategy on Friday asked shareholders to approve daily dividends on STRC and three other preferred stocks at an Oct. 28 special meeting.
Related Listen: Strategy Sold More Bitcoin. Is This a Betrayal of the Bitcoin Ethos?
