Key Insights:
- Strategy (MSTR) bought 950 Bitcoin for $75.7 million at an average price of $79,670.
- Strategy now holds 846,000 BTC after its latest purchase.
- MSTR stock rose as Strategy also repurchased 1.77 million STRC shares.
Strategy bought 950 Bitcoin for $75.7 million as the BTC price moved back toward a nine-month high, lifting its holdings to 846,000 BTC. The purchase came as MSTR stock rose sharply, while the company also spent $174 million buying back STRC shares. Its cash reserves stayed strong during the period.
Strategy Adds 950 Bitcoin as MSTR Stock Moves Higher
Strategy disclosed the latest purchase in a September 21 Form 8-K filing. The company bought the 950 Bitcoin between September 14 and September 20 using USD Cash. The average price was $79,670 per Bitcoin, with the total purchase cost including fees and expenses.
The new purchase takes Strategy’s total Bitcoin holdings to 846,000 BTC as of September 20. The company has spent $63.80 billion in total on those holdings, giving it an average purchase price of $75,416 per Bitcoin, including fees and expenses.
Notably, the filing also showed that Strategy did not sell any shares through its at-the-market offering program during the same period. That means the latest Bitcoin purchase was made from the company’s existing USD Cash rather than new shares sold through the ATM program.
CoinGecko reported that its Crypto Fear & Greed Index had reached 46, a neutral reading, after falling to 10 in February when Bitcoin traded below $70,000. The index now sits higher as Bitcoin trades around $81,000.
MSTR Stock Follows Bitcoin Treasury Activity
Alongside the Bitcoin purchase, Strategy used $174 million of USD Cash to repurchase 1,771,238 shares of its STRC preferred stock. No STRF, STRK, STRD, or MSTR shares were repurchased during the period.
The company said $875.1 million remains available under its digital credit securities repurchase program for preferred stock. A further $1 billion remains available under the MSTR stock repurchase program.
Strategy separates its cash into two main pools. Its USD Reserve is meant to support preferred stock dividends and interest payments on debt, while USD Cash can be used for Bitcoin purchases, increasing the reserve, and other capital needs.
Between September 14 and September 20, Strategy used $57.4 million from the USD Reserve to pay preferred stock dividends and interest on its debt. At the end of the period, the USD Reserve stood at $5.04 billion, while USD Cash stood at $1.05 billion. For MSTR stock investors, the latest filing also gives a clear view of how much cash the company is using for its treasury strategy.
Strategy Keeps Building Its Bitcoin Treasury
Strategy’s latest purchase adds to one of the largest corporate Bitcoin holdings disclosed by a public company. With 846,000 BTC on its balance sheet, each new purchase can change the company’s average acquisition cost depending on the price paid.
This week’s purchase was made at $79,670 per Bitcoin, above Strategy’s overall average purchase price of $75,416. The latest batch therefore has a higher entry level than the company’s wider holdings.
At the same time, Strategy kept a large USD Reserve of $5.04 billion. The reserve is designed to cover preferred stock dividends and interest on debt, giving the company a separate pool from the $1.05 billion it calls USD Cash.
The latest filing also confirms that no new MSTR shares were repurchased during the week, while the company continued its preferred stock buyback through STRC. Strategy therefore directed cash toward three areas during the period: 950 Bitcoin, STRC repurchases, and $57.4 million in dividends and interest.
For MSTR stock watchers, the filing provides another update on the scale of Strategy’s Bitcoin strategy and the cash supporting it. The company also pointed investors to its public dashboard, where it shares information on Bitcoin holdings, purchases, market prices, and other key figures.
