Strategy has expanded the buyback capacity for its preferred securities after stepping into the market to repurchase STRC below par. In an 8-K filed Tuesday, the company said its board approved an increase in the aggregate authorization under the Digital Credit Securities Repurchase Program from $1 billion to $2 billion. As of Sept. 7, $1.19 billion remained available under the enlarged authorization.
The filing shows Strategy repurchased 1,810,885 shares of STRC, its variable-rate perpetual preferred stock, for $176.3 million between Aug. 31 and Sept. 7. That implies a price of roughly $97 per share, under the instrument’s $100 par value. No STRF, STRK, STRD, or MSTR shares were bought back during the same period.
Strategy said the repurchases were funded entirely with U.S. dollar cash. It also sold no shares through its at-the-market program and made no bitcoin purchases or sales during the week, leaving its holdings unchanged at 845,050 BTC acquired for $63.73 billion, or an average of $75,412 per coin. The company reported $5.10 billion in its USD Reserve and another $1.44 billion in general-purpose U.S. dollar cash.
Strategy doubled the aggregate authorization under its Digital Credit Securities Repurchase Program from $1 billion to $2 billion, according to an 8-K filing submitted Tuesday.
As of Sept. 7, the company said $1.19 billion remained available under the expanded program.
STRC repurchases totaled $176.3 million in one week
Between Aug. 31 and Sept. 7, Strategy repurchased 1,810,885 shares of STRC, its variable-rate perpetual preferred stock, for $176.3 million.
That comes out to roughly $97 per share, below the instrument’s $100 par value, which it is designed to hold.
The company did not repurchase any STRF, STRK, STRD, or MSTR shares during the period.
Buybacks were funded with USD cash
Strategy said it funded the repurchases entirely from U.S. dollar cash.
It also sold no shares through its at-the-market program and neither bought nor sold bitcoin during the period. Its bitcoin holdings therefore stayed flat at 845,050 BTC.
The company said those holdings were acquired for $63.73 billion, at an average cost of $75,412 per bitcoin.
Cash reserves included $5.10 billion in the USD Reserve, which backs preferred dividends and debt interest, plus $1.44 billion in general-purpose U.S. dollar cash.
Program dates back to June 29 financing overhaul
Strategy tied the repurchase program to the financing overhaul it announced on June 29. That plan authorized up to $1.25 billion in bitcoin sales, along with separate $1 billion buyback authorizations for preferred stock and common stock.
The entire $1 billion authorization on the MSTR side remains unused.
According to Unchained, the program comes after STRC has faced struggles in recent months.
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