Strategy Buys 250 Bitcoin for $21.5M, Sending Total Holdings to a Record 848,250 BTC

Key Takeaways:

• On its part, Strategy is said to have bought 250 BTC at $21.5 million or an average price of $86,194 per BTC.
• It owns a total of 848,250 BTC, purchased at a total value of approximately $64.0 billion.
• The company also used $192.4 million to buy back preferred STRC stock in the week.

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Despite the purchase quantity decreasing, Strategy had added 250 Bitcoin to its holding between October 5 and October 11. Even as the buying volume subsided, Strategy had increased its Bitcoin holdings by 250 BTC between October 5 and 11.

The purchase brought the company’s total BTC holdings to 848,250 BTC, solidifying its position as the biggest corporate Bitcoin owners.

In total, Strategy paid $21.5 million to buy the latest batch of Bitcoins including fees and expenses. The average price of acquiring one of these 250 BTC was $86,194 per Bitcoin for the company.

Income from two sources. Net proceeds from the sales of MSTR common stock funded an equal amount of the purchase; MSTR’s cash balance funded the remainder which amounted to approximately USD 500,000.

A total of 125,183 MSTR shares were sold this past week, yielding net proceeds of $21.0 million.

As of 11 October, Strategy had 848,250 BTC in its balance. The total money allotted to the purchase of those assets at various times was around $64.0 billion, including fees and expenses, the company said.

That means Strategy has ended up paying an average of $75,444 per BTC for all of its Bitcoin holdings. The firm is sticking to its core capital approach, which involves equity issuance and cash reserves, and not on just one fund source, and continues to focus on the Bitcoin aspect of the business.

Bitcoin was not the only big investment that Strategy made in the week. The Company purchased 1,932,145 STRC preferred shares for an aggregate purchase price of $192.4 million. STRF, STRK, STRD and MSTR have not had any repurchases reported for the same time period.

Strategy has $354.8 million under its optional preferred-stock repurchase program and $1.0 billion under its authorization to buy back MSTR common stock.

As of October 11, Strategy also had $4.88 billion USD of Reserve and $640.5 million USD of separate USD Cash. The USD Reserve is the reserved share of the debt to support preferred-stock dividends and interest payments on the debt.

USD Cash can have a more salient role and may be used for the acquisition of Bitcoin, expansion of the reserves, or in other aspects of capital management. The firm has utilised $500,000 in those cash reservoirs for its latest Bitcoin investment, while the majority of the acquiring investment was made with new MSTR stock dollars.

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