Strategy skips Bitcoin buy to repurchase $176M of STRC preferred shares
Strategy repurchased $176 million worth of its STRC preferred stock and doubled the size of its digital securities repurchase program to $2 billion, while pausing on new Bitcoin buys.
Strategy, the largest corporate Bitcoin treasury, decided against purchasing Bitcoin and instead repurchased $176 million worth of its STRC preferred shares. Between August 31 and September 7, Strategy acquired 1.8 million STRC shares for a total of $176.3 million, according to a filing with the US Securities and Exchange Commission.
The company also doubled its Digital Credit Securities Repurchase Program to $2 billion. Presently, Strategy's holdings amount to 845,050 Bitcoin (BTC), acquired for a total of $63.6 billion, with an average purchase price of $75,412 per Bitcoin. The company's last Bitcoin purchase occurred last week, with a $370 million acquisition.
While STRC's share price remained relatively stable in premarket activity, trading at $97.70, or 2.3% below its intended $100 par value, MSTR common stock saw a more significant decline of more than 3%. STRC, a vital tool for funding Strategy's Bitcoin accumulation, trading below par may impede the company's ability to raise funds through STRC sales and might necessitate an increase in its dividend rate.
In June, Strategy unveiled a capital framework allowing Bitcoin sales to fund dividends, subsequently raising the annual dividend rate on STRC preferred stock to 12%. Meanwhile, other companies stepped up their Bitcoin purchases, with Strive acquiring 1,375 BTC for $109 million, raising its total holdings to 24,531 BTC. France-listed Capital B also made a $25 million Bitcoin acquisition, its largest in nearly a year, surpassing H100 Group among publicly traded BTC holders.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
