Strategy Buys $22M in Bitcoin, Buys Back $193M of STRC

Strategy, the Bitcoin treasury firm, purchased 267 BTC for $22.1 million between October 12 and 18, paying an average of $82,900 per coin including fees. This follows the company's acquisition of 250 BTC the previous week at an average price of $86,194 per coin.

The company funded the Bitcoin purchase primarily by selling 140,872 shares of its MSTR common stock through its at-the-market offering program, with an additional $0.1 million from cash reserves. No preferred stock was sold during the transaction period.

Stock Buyback Expansion

Simultaneously with the Bitcoin purchase, Strategy repurchased $193.1 million of its STRC preferred stock, acquiring 1,938,780 shares. The company's board increased the cap on its digital credit securities repurchase program to $3 billion from $2 billion, leaving $1.16 billion available for future purchases.

The buybacks utilized $193.1 million from what Strategy calls USD Cash, money set aside for general purposes including Bitcoin acquisitions. A separate program to buy back MSTR common stock still has $1 billion remaining.

Treasury Holdings

As of October 18, Strategy holds 848,517 BTC, acquired for a total of $64.02 billion at an average of $75,446 per coin. The company also reported $5.3 billion in USD assets, with its USD Reserve holding $4.83 billion and USD Cash at $447.3 million.

MSCI Index Concern

Strategy faces potential removal from MSCI's widely tracked equity indexes after the provider finalized a rule on October 15 that treats "non-operating companies" as ineligible for its Global Investable Market Indexes. The rule targets companies whose balance sheets are dominated by a single asset.

The index provider will publish the list of affected companies on November 11, with removal effective at the close of November 30. Saylor had previously urged MSCI to drop what he called a "discriminatory" rule that would force tracking funds to sell affected shares.