Strategy sold 1,690 Bitcoin for $108.6 million and used the cash to buy back 1,152,020 shares of its STRC preferred stock, the company said. The sale trims its Bitcoin holdings to 840,447 coins from 842,138, leaving the firm with the largest corporate Bitcoin stash on the planet.
The buyback math
The repurchase cost about $109 million, slightly more than the Bitcoin sale brought in. Strategy also added $650 million to its USD Reserve, the cash buffer it uses to back the preferred stock. The buyback stretched the reserve's duration by 143 days to 2.7 years and tightened STRC's BTC Credit by 10 basis points, a measure of how much Bitcoin backs each share.
Why STRC needed support
STRC fell below its $100 stated value in June, a sign the market was pricing in more risk. The preferred stock is designed to give holders a claim on Bitcoin upside while paying a dividend, but the bear market has hammered it. Bitcoin is nearly 50% below its October record, and MSTR, the common stock, is down about 80% from its all-time high.
No new Bitcoin since June
Strategy hasn't bought any Bitcoin since June, a break from the aggressive accumulation that started in August 2020. The company has spent more than $63.5 billion on Bitcoin over that stretch. CEO Phong Le said he isn't worried about the current bear market and plans to remain a long-term buyer.
Market reaction
MSTR traded nearly 3% lower on Monday. The sale and buyback come as the company tries to support its preferred stock without adding to its Bitcoin position.
