Strategy said Monday that it again passed on buying Bitcoin and instead repurchased $25 million of its own preferred stock product, Stretch (STRC). The company disclosed the move in a filing and in a post on X.
$544.5 million raised through MSTR share sales
According to the filing, Strategy sold 5,429,160 shares of MSTR common stock through its at-the-market program between July 20 and July 26, generating $544.5 million in net proceeds.
The company said this was the first time it had repurchased STRC. The report described STRC as one of several Strategy products that give investors exposure to Bitcoin through shares that also pay a dividend.
Bitcoin holdings remain at 843,775 BTC
Strategy still holds 843,775 Bitcoins on its balance sheet. Using the cited price of $65,576 per coin, those holdings are worth more than $55 billion.
The pause in Bitcoin buying has now stretched to five consecutive periods. The article said Strategy has leaned toward accumulating dollars rather than making fresh Bitcoin purchases in recent weeks, a change from the aggressive buying that defined much of its earlier history.
A filing said the company now has $3.75 billion in cash that will not be used to fund repurchases.
Company says buyback is about balance-sheet strength
Strategy said the repurchase plan, approved earlier this month, is aimed at strengthening the balance sheet rather than signaling a retreat. President and CEO Phong Le has said the company intends to remain a long-term buyer of Bitcoin.
Bitcoin strategy dates back to August 2020
Strategy, formerly MicroStrategy, began buying Bitcoin in August 2020. The company said at the time that the move was intended to generate better returns for shareholders during the COVID-19 pandemic.
Since then, it has spent about $63.9 billion on Bitcoin and has become the largest corporate holder of the asset. Investors can buy Strategy shares to get exposure to the leading cryptocurrency without buying and holding digital coins directly.
The article also said Strategy inspired a long list of copycat firms that bought not only Bitcoin, but other cryptocurrencies as well, in an effort to boost their stock prices.
MSTR rises nearly 7% Monday, still down nearly 40% YTD
Strategy shares, listed on Nasdaq under the ticker MSTR, were trading nearly 7% higher on Monday at close to $98 per share. Even with that move, the stock is down nearly 40% year to date.
This report first appeared in Bitcoin Magazine and was written by Mathew Di Salvo.
