Strategy has expanded its Bitcoin reserves to a record while continuing efforts to support its preferred securities.
The company returned to aggressive Bitcoin accumulation after earlier reducing its holdings during the summer. Meanwhile, Strategy also directed substantial capital toward repurchasing its STRC preferred shares.
The transactions come before shareholders consider proposed changes to the company’s preferred dividend structure.
Strategy Bitcoin holdings reach record 847,666 BTC
Strategy purchased 1,665 Bitcoin during the week ending September 27, according to its latest SEC filing.
The company spent $142.7 million on the acquisition, paying an average price of $85,681 per Bitcoin.
The purchase lifted Strategy Bitcoin holdings to a record 847,666 BTC.
That figure surpassed the previous record of 847,363 BTC reported on June 22.
Strategy later sold portions of its Bitcoin reserves during the summer as the company managed its balance sheet.
However, the Michael Saylor-led company resumed Bitcoin purchases during August and has now recovered those previously sold holdings.
Strategy has spent approximately $63.95 billion building its Bitcoin position.
Its overall average purchase price stands at $75,437 per Bitcoin.
The holdings carried an estimated market value of roughly $70.6 billion when Strategy released the filing.
That valuation placed the position about $6.6 billion above the company’s reported acquisition cost.
Bitcoin traded near $83,400 around the filing’s release, representing a daily decline of approximately 1.4%.
Strategy financed last week’s Bitcoin purchase mainly through its at-the-market common stock program.
The company sold 1,469,165 MSTR shares, generating approximately $246.2 million in net proceeds.
Strategy allocated $142.7 million from those proceeds toward Bitcoin purchases.
It directed another $103.5 million toward repurchasing STRC preferred shares.
Strategy expands STRC buyback before dividend vote
Strategy also purchased 1,534,530 shares of its Variable Rate Series A Perpetual Stretch Preferred stock.
The company spent $151.7 million on the STRC repurchase during the same reporting period.
Strategy funded $103.5 million through MSTR share sales and used another $48.1 million from its USD Cash holdings.
The company has used repurchases to support STRC toward its stated $100 par value.
STRC has traded below that level, prompting Strategy to allocate additional capital toward its preferred securities program.
Following the transactions, Strategy reported approximately $1 billion in USD Cash.
Its separate USD Reserve stood at $5.02 billion after the company paid $22.1 million in preferred dividends.
Strategy also reported $723.5 million of remaining capacity under its digital credit securities repurchase program.
The latest buyback comes before an October 28 shareholder vote involving Strategy’s preferred dividend structure.
On September 25, Strategy proposed moving STRC, STRD, STRF, and STRK preferred securities to daily dividend payments.
Only common shareholders will vote on the proposal, while preferred shareholders will not participate.
If shareholders approve the plan, STRC will become the first security to adopt daily distributions.
The proposed STRC record date is November 1, followed by the first daily dividend payment on November 2.
Strategy said the change would not alter existing coupon rates or the company’s total dividend obligations.
The proposal forms another part of Strategy’s effort to manage its preferred securities while maintaining its Bitcoin accumulation strategy.
