Strategy buys 267 bitcoins and repurchases 193 million dollars of STRC shares

Strategy continues its financial strategy by combining bitcoin purchases and preferred stock buybacks. Between October 12 and 18, Michael Saylor’s company acquired 267 BTC for 22.1 million dollars. At the same time, it dedicated 193.1 million dollars to repurchasing STRC securities. This operation comes as Strategy maintains a significant bitcoin reserve, and its leader anticipates a market return to a bullish phase.

Strategy buys 267 bitcoins and strengthens its reserves

Michael Saylor’s company Strategy purchased 267 bitcoins between October 12 and 18, at an average price of 82,900 dollars per unit. The company thus invested an additional 22.1 million dollars in the leading cryptocurrency. According to a document submitted Monday to the Securities and Exchange Commission (SEC), its reserves now total 848,517 BTC. This new move confirms the continuation of its acquisitions despite larger expenditures dedicated to preferred stocks.

To finance this purchase, Strategy primarily used the 22 million dollars obtained from the sale of 140,872 MSTR common shares. This operation allowed it to fund its acquisition without mobilizing a significant portion of its existing cash reserves. Meanwhile, the company reserved its available funds for repurchasing STRC securities. This allocation shows that the company pursues two distinct financial objectives.

However, the amounts involved illustrate a notable gap between the two operations. Strategy dedicated 193.1 million dollars to the repurchase of 1.94 million preferred STRC shares. This amount is nearly nine times the investment in new bitcoins. The company also raised its authorization to repurchase digital credit securities from 2 to 3 billion dollars.

STRC buybacks exceed bitcoin purchases

Since the start of the fourth quarter, Strategy has spent 459.2 million dollars repurchasing STRC shares. Over the same period, it invested 72.3 million dollars, acquiring 851 bitcoins. Buybacks therefore represent more than six times the spending on cryptocurrency. This difference confirms the growing role of preferred stock transactions in the company’s recent financial decisions.

STRC is a variable-rate preferred stock designed to pay regular dividends. Strategy aims to repurchase shares trading below their par value of 100 dollars to support their price. This policy partly explains the emphasis on these transactions. It also allows the company to influence the value of its shares while maintaining its bitcoin reserves.

To cover its financial commitments, Strategy states it holds 4.83 billion dollars designated for preferred stock dividends and debt interest. It also has 447.3 million dollars in separate cash reserves. These reserves provide a margin to honor its payments. However, the evolving spending between cryptocurrency purchases and stock buybacks will remain an important element to monitor.

Saylor anticipates a return of a bull market

Despite these larger buybacks, Michael Saylor remains optimistic about bitcoin’s outlook. During a discussion held Saturday during ParaFi’s investor day, he stated, “We are entering a bull market again.” He notably mentioned the price returning above its 200-day simple moving average. This indicator is often used to observe long-term price trends.

Saylor also cited several factors that could restrain the market. According to him, restrictive trade, foreign, and monetary policies are obstacles for BTC. Conversely, growing adoption by banks and the tokenization of traditional financial assets could support its development. These elements fuel his expectations, without guaranteeing a sustained price increase.

In the markets, MSTR stock was up more than 2.5% in premarket Monday, according to Yahoo Finance data, after losing about 9.6% Friday, closing at 138.83 dollars. STRC shares gained nearly 0.8%, at 98.45 dollars, after a 1.8% decline in the previous session.

In the short term, Strategy is therefore expected to continue its trades between bitcoin accumulation and preferred stock management. The pace of STRC buybacks, the evolution of its reserves, and market conditions will determine the continuation of this policy. The sustained return of bitcoin above its technical benchmarks could also influence the company’s upcoming decisions.