Strategy bought 267 Bitcoin last week but spent nearly nine times as much repurchasing its STRC preferred stock. The company also raised its buyback authorization to $3 billion from $2 billion.
Strategy bought 267 Bitcoin for $22.1 million at an average price of $82,900 between Oct. 12 and Oct. 18, according to a Monday filing with the US Securities and Exchange Commission. The purchase brings its holdings to 848,517 BTC.
STRC buybacks outpace Bitcoin purchases
The company also repurchased 1.94 million shares of its Stretch (STRC) preferred stock for $193.1 million. In addition, it lifted its digital credit securities stock buyback authorization to $3 billion from $2 billion.
Strategy funded the Bitcoin purchase mainly with $22 million from selling 140,872 shares of its common stock, MSTR, and used existing cash for the STRC repurchases. So far in the fourth quarter, it has spent $459.2 million on STRC shares, more than six times the $72.3 million it paid for 851 Bitcoin.
STRC is a variable-rate preferred stock designed to pay regular dividends. Strategy has previously said it intends to repurchase shares trading below their $100 stated value to help support the stock's price.
Saylor points to a Bitcoin recovery
The heavier spending on buybacks comes as Michael Saylor spoke at ParaFi Investor Day on Saturday. According to Cointelegraph, Saylor said: "We're moving back into a bull market," pointing to Bitcoin's recovery above its 200-day simple moving average.
Strategy's stock fell 11.3% last week, while Bitcoin declined 2.6% over the same period, according to The Block.
As of Oct. 18, the company's USD Reserve stood at $4.83 billion alongside $447.3 million in USD Cash.
Sources: SEC filing, Cointelegraph, The Block
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