HomeCoinsStrategy Buys Back Stock, Skips Bitcoin Purchase

Strategy Buys Back Stock, Skips Bitcoin Purchase

Bitcoin treasury Strategy held off buying bitcoin again last week. The Nasdaq-listed company said it instead bought $139 million of its preferred stock STRC. 

A Monday filing with the Securities and Exchange Commission on Monday showed that the company repurchased 1.42 million STRC preferred shares for around $139.3 million between September 8 and September 13. 

The company still owns 845,050 bitcoins worth $66.2 billion at today’s prices, and has two cash balances: USD Reserve and USD Cash, holding $5.1 billion and $1.3 billion, respectively. 

Read More:  Bitcoin Volatility Is Down But Expect A Move Soon: Fidelity

Strategy, which is the largest corporate holder of bitcoin, this year switched from predictably buying the biggest cryptocurrency this week to buying back its stock and building a cash reserve. 

On some occasions, the company even sold small bits of its BTC stash — despite founder and chairman Michael Saylor famously preaching to “never sell your bitcoin.” 

After a 10-week hiatus, the company started buying bitcoin again in the final week of August, scooping up nearly $370 million in the leading cryptocurrency. 

It hasn’t bought any bitcoin since. 

Read More:  U.S. Investors Want To Up Their Crypto Holdings: Charles Schwab

Its Nasdaq-listed shares (MSTR) were 3% trading higher on Monday. The stock has lost over 75% of its value since notching a record in November 2024 — one month before bitcoin passed the once mythical and long-awaited $100,000 mark. 

Strategy — formerly MicroStrategy — is an enterprise software company that pivoted to buying and holding bitcoin in 2020. 

It first bought the cryptocurrency to protect its shareholders from inflation but has since aggressively bought the asset and pivoted to being a bitcoin treasury.

Read More:  Clarity Act Should Pass, Says Coinbase's Policy Officer

Strategy has defended its recent bitcoin sales, with CEO Phong Le saying that the company now has a “bullet-proof balance sheet.” 

In the company’s quarterly earnings in July, Strategy posted a $8.22 billion loss. But Le reassured investors that the firm’s current paper loss was nothing to worry about.

“We’re the J.P. Morgan of the crypto economy, so whether we sell 1,000 bitcoin out of 840,000 to me is irrelevant to the conversation,” Le said in a subsequent interview. 

Facebook Comments Box

LATEST POSTS

Polymarket suspended trading amid reports of user funds being drained

The prediction markets platform halted trading on Thursday after it reported one of its third party providers had been compromised.

Binance Halts Withdrawals, Confirms Hack Of $6.3 Billion

Bitcoin traded in the $76,300 range on Thursday as Binance confirmed a security breach that the exchange estimates at $6.3 billion in total...

Most Popular

spot_img