Strategy, formerly known as MicroStrategy, purchased 950 Bitcoin during the week ending September 20, marking the resumption of acquisitions following a two-week gap in buying activity. The company valued the purchase at approximately $77 million based on a bitcoin price of $81,200 used in its Monday filing. The acquisition also included $174 million in repurchases of Variable Rate Series A Perpetual Stretch Preferred Stock, a Nasdaq-listed share class the company designed to trade near $100 per share.
The bitcoin purchase came after a longer pause in accumulation. Strategy’s prior significant acquisition occurred on August 31, when the company purchased 4,603 Bitcoin for $369.7 million at an average price of $80,318 per coin following a 10-week buying hiatus. By comparison, the latest week’s purchase represented a roughly 79% smaller investment in dollar terms. Executive Chairman Michael Saylor announced the acquisition on Sunday with a social media post stating “A little more orange.” Bitcoin subsequently traded near $85,020 on Monday, reflecting an increase of almost 6% over a 24-hour period.
Strategy’s preferred stock repurchase program operates under parameters established through the Digital Credit Capital Framework announced in June. The company commenced STRC buybacks in late July at an average price of $86.52 per share. Chief Executive Phong Le characterized the repurchase strategy as attractive capital allocation when shares traded below par value, citing the potential to reduce future preferred dividend obligations. The preferred stock closed at $98.51 on Friday. These repurchases are funded through common share sales and potential bitcoin sales rather than from the company’s cash reserves, which totaled $6.09 billion as of September 20.
Competitor Strive, a significantly smaller Bitcoin treasury company, outpaced Strategy’s acquisition rate during the same period. Strive purchased 1,355 Bitcoin between September 14 and September 18 at an average price of $79,475 per coin, increasing its total holdings to 26,355 Bitcoin, approximately 3% of Strategy’s accumulated position. Strive Chief Executive Matt Cole reported the acquisition cost at $107.7 million and noted that warrant exercises generated $21.2 million in gross proceeds. Strive also utilizes a variable rate perpetual preferred share structure similar to Strategy’s, with such shares accounting for 57.7% of its total capital raised.
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