Strategy reveals that within the week ending September 7, the company did not continue to buy Bitcoin. Just a week prior to that, this Bitcoin treasury company had ended a two-month pause in its buying activities. The latest documents show that the company spent $176.3 million during that week on repurchasing its own preferred stocks and simultaneously expanded the relevant repurchase authorization.
Repurchase scale rises to $2 billion
The announcement reveals that the board of directors of Strategy has increased the authorized scale of the digital credit securities repurchase program from $1 billion to $2 billion. As of September 7, there is still a balance of $1.19 billion available under this program.
Meanwhile, the company's other $1 billion repurchase plan for MSTR common shares has not yet been utilized.
Bitcoin holdings remain at 845,000 coins.
As of September 7th, Strategy holds 845,050 Bitcoin coins and owns assets worth $6.5 billion. According to the market data cited in the text, and at a price of approximately $77,760 per Bitcoin, the market value of this holding is about $65.7 billion, which is higher than the cumulative purchase cost of about $63.7 billion, resulting in a floating profit of about 3%.
However, the batch of Bitcoin purchased when the company resumed buying last week had an average purchase price of about $80,318 per coin, and it is still in a loss position based on the current price.
Cash pool usage shifted to repurchase
Strategy Currently, the US dollar reserves are divided into two parts: one part is $5.1 billion in USD Reserve, which is mainly used to pay preferred stock dividends and interest; the other part is $1.44 billion in USD Cash, which can be used by management to buy Bitcoin or for other purposes.
The funds for this $176.3 million repurchase of preferred stock come from the latter. In August, the company raised $2 billion by selling MSTR shares and used this to establish this portion of USD Cash. Subsequently, the company used about $370 million of this amount to buy Bitcoin, marking its first increase in holdings since June.
However, in the most recent week, the company did not continue to increase its holdings but instead directed some of its funds towards capital structure adjustment.
MSCI Index qualification still pending results
In addition to the funding arrangements, Strategy, the Chairman, and Phong Le, the CEO, also requested last week that MSCI revoke one of the index rules. The two believe that this rule may lead to Strategy being excluded from the MSCI global index system, which they consider to be discriminatory.
According to the disclosure, funds that track relevant indices currently hold approximately 3.1% of the basic outstanding shares of Strategy. The public consultation for MSCI will end at the end of September, and the final decision is expected to be announced on October 16th.
Additional information:This document is signed by Strategy, the Chief Legal Advisor, and Thomas C and Chow.
