- Strategy (formerly known as MicroStrategy, ticker: MSTR) bought 950 Bitcoins worth $75.7 million, at an average price of $79,670 per Bitcoin.
- The company's total Bitcoin holdings are now 846,000 Bitcoins after this deal.
- MSTR shares rose as the company also repurchased 1.77 million shares of STRC preferred stock.
### Purchase details
Strategy bought 950 Bitcoin for $75.7 million, as the price of Bitcoin returned to its highest level in nine months, bringing its total holdings to 846,000 Bitcoin. The purchase coincided with a sharp rise in MSTR stock, while the company spent $174 million on repurchasing STRC shares. Its cash reserves remained strong during this period.
### Adding 950 Bitcoin as MSTR stock rises
Strategy disclosed the latest purchase in a Form 8-K filing dated September 21. The company bought 950 Bitcoin between September 14 and 20 using cash in U.S. dollars (USD Cash). The average price was $79,670 per Bitcoin, including fees and expenses.
With this purchase, Strategy’s total Bitcoin holdings reached 846,000 Bitcoin as of September 20. The company spent a total of $63.80 billion on these holdings, making the overall average purchase price $75,416 per Bitcoin (including fees and expenses).
The filing also showed that the company did not sell any shares through an at-the-market offering program (ATM) during the same period. This means that the company’s latest Bitcoin purchase was made from the cash it already held, not from newly sold shares through the ATM program.
CoinGecko reported that the Crypto Fear and Greed Index reached 46 (a neutral reading) after it fell to 10 in February when Bitcoin was trading below $70,000. The index is now at a higher level, with Bitcoin trading around $81,000.
### MSTR stock follows Bitcoin treasury activity
In addition to buying Bitcoin, Strategy used $174 million in cash in U.S. dollars to repurchase 1,771,238 shares of its preferred stock of type STRC. No shares were repurchased from STRF, STRK, STRD, or MSTR during the period.
The company said that $875.1 million was still available under its preferred digital equity securities repurchase program. In addition, $1 billion remained available under the MSTR share repurchase program.
Strategy divides its cash into two main groups:
- Dollar reserves (USD Reserve): earmarked to support preferred share dividends and debt interest.
- Cash in U.S. dollars (USD Cash): can be used to buy Bitcoin, increase reserves, or meet other capital requirements.
Between 14 and 20 September, Strategy used $57.4 million from its dollar reserves to pay dividends on its preferred shares and interest on its debt. At the end of the period, dollar reserves stood at $5.04 billion, while cash in dollars was $1.05 billion. The latest filing provides investors with a clear picture of the amount of cash the company uses in its treasury strategy for MSTR.
### Continued build-up of the Bitcoin treasury
This latest purchase adds to one of the largest institutional Bitcoin holdings disclosed by a public company. With 846,000 Bitcoin on its balance sheet, each new purchase can change the average acquisition cost based on the price paid.
This tranche was bought at an average of $79,670 per Bitcoin, which is higher than the company’s overall average purchase price of $75,416. Therefore, this tranche has a higher entry level than the rest of the holdings.
At the same time, the company maintained a large dollar reserve of $5.04 billion, designed to cover preferred share dividends and debt interest, separate from the $1.05 billion it calls “cash in U.S. dollars.”
The filing also confirms that no new MSTR shares were repurchased during the week, while the company continued to repurchase preferred shares through STRC. As a result, the company directed cash during the period toward three areas:
1. Purchase of 950 Bitcoin.
2. Repurchase of STRC shares.
3. Paid $57.4 million in dividends and interest.
For MSTR stock followers, the filing provides another update on the company’s Bitcoin strategy size and the cash supporting it. The company also directed investors to its public dashboard, where it shares information about its Bitcoin holdings, purchases, market prices, and other key figures.
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