Michael Saylor released a vague statement claiming to be "handling some Bitcoin transactions behind closed doors." Previously, Strategy disclosed a Bitcoin purchase of $22.1 million, with the funds mainly coming from the sale of common stocks.

• The post with the label Saylor that mentions "handling privately" does not provide information on the purchase amount, transaction date, or financing details.
• Strategy purchased a total of 517 Bitcoins within the two weeks covered by the last two disclosures, amounting to $43.6 million.
• Of these Bitcoin purchases, approximately 98.6% of the funds came from the sale of common stocks, with the remainder paid in cash.
• During the same period, the total amount repurchased by STRC was 385.5 million US dollars, which is approximately 8.8 times the amount spent on Bitcoin.

On October 23rd, Michael Saylor posted on platform X, saying: “Just resolving a few Bitcoin matters behind closed doors.”

This post comes with a 14-second action video in the style of "The Matrix," featuring Saylor as the protagonist, but no purchase amount, transaction date, or financing details were disclosed. The post was published before October 26th (Monday), whereas the company's previous two disclosures occurred on the first two Mondays. Neither the caption nor the accompanying screenshots indicate when Strategy will release the next transaction update.

A 8-K filing submitted by the company on October 19th revealed that from October 12th to 18th, Strategy purchased 267 bitcoins at an average price of $82,900 per coin, which included fees and expenses. As of that time, their holdings amounted to 848,517 bitcoins, with a total purchase cost of $64.02 billion and an average cost of $75,446 per coin.

Saylor Sometimes previous posts appeared before the coin purchase announcements. On October 11th, he wrote: “There’s always room for more orange”, and then on the following day, Strategy disclosed the purchase of 250 bitcoins. The latest post on Friday did not indicate whether it was related to another acquisition.

Strategy There has been a slight increase in Bitcoin purchases over the past two weeks.

In its announcement on October 12, Strategy disclosed that between October 5 and 11, the company spent $21.5 million to purchase 250 bitcoins, with an average purchase price of $86,194 per coin at that time. In the following week, an additional 17 coins were bought, costing an extra $600,000.

Based on these two disclosures, the number of bitcoins purchased increased by 6.8%, while the expenditure in US dollars increased by about 2.8%. The average purchase price between the two reporting periods decreased by approximately 3.8%.

In total, 517 Bitcoins were purchased over these two weeks, costing $43.6 million. These figures represent the purchases that were completed as of October 18th and do not indicate how many Bitcoins Strategy purchased during the week of Saylor's latest post.

As previously reported by crypto.news, the earlier purchase of 250 bitcoins by Strategy brought its holdings to 848,250 bitcoins. The company's average purchase cost over the two disclosures increased from $75,444 to $75,446, and both sets of company data include fees and expenses.

Common stocks constitute the main source of funds for the latest Bitcoin purchases.

In the document dated October 19th, Strategy indicates that the funds for the latest purchase came from the sale of 140,872 shares of MSTR common stock, which generated $22 million, as well as $100,000 in existing US cash. There were no sales of preferred stocks listed in the ATM table for that week.

As disclosed on October 12 of the previous week, the sources of funds included $21 million from the sale of common stock and $500,000 in cash. Strategy sold 125,183 shares of common stock during that period.

Over the two periods, Strategy sold a total of 266,055 ordinary shares, generating a net income of 43 million US dollars, and used 600,000 US dollars in cash to purchase Bitcoin. As a result, the proceeds from the sale of ordinary shares covered approximately 98.6% of the total expenditure on purchasing Bitcoin.

These weekly disclosed transactions show that the company's recent financing structure differs from its historical use of preferred securities. A report on October 21st mentioned a study by Fidelity Digital Assets regarding preferred stock financing channels, which included a total of 135,979 Bitcoins obtained through this channel as of October 5th.

The number Fidelity refers to the financing channels studied in the report, and not to the total holdings of Strategy. The report states that between March and May, over 95,000 bitcoins were purchased through the issuance of preferred stocks, with a financing scale of over 7 billion US dollars.

Fidelity reminds that preferred stocks centered around Bitcoin are not equivalent to money market funds. Its report links the success of such products to the long-term performance of Bitcoin as well as to the issuing companies themselves, and does not regard the stated income payments as a guarantee of investment returns.

STRC Repurchase scale exceeds Bitcoin expenditure

From October 12th to 18th, Strategy spent $193.1 million on repurchasing STRC; previously, from October 5th to 11th, it spent $192.4 million. The total for two weeks is $385.5 million, which is approximately 8.8 times the amount of Bitcoin expenditure of $43.6 million during the same period.

In a message on October 19th, the company reiterated that its target for the long-term trading range of STRC is between $99 and $100. The company's published policy states that it will conduct regular repurchases when the price falls below $100, and management has indicated that they will not issue new shares of STRC below this level.

STRC is the floating-rate Series A perpetual Stretch preferred stock of Strategy. The chart from October 19th shows a dividend yield of 12%, payments twice a month, and arrangements for a vote on daily dividends to be held on October 28th.

The board of directors has expanded the authorization for the repurchase of preferred securities from $2 billion to $3 billion, including previous purchases and related costs. As of October 18th, there was a remaining balance of $1.16 billion under this authorization, according to Strategy.

Repurchase and dividend payments are funded from different cash accounts.

The capital framework of Strategy distinguishes between US dollar reserves and US dollar cash for general purposes. The former is used to support preferred stock dividends and debt interest, while the latter is used for purchasing Bitcoin and capital management.

From October 12th to 18th, the company used $193.1 million in cash to repurchase STRC, and expended $45.5 million from its reserves to pay preferred stock dividends. At the end of the reporting period, the balances were $447.3 million in cash and $4.83 billion in reserves, respectively.

A week ago, Strategy reported $640.5 million in cash and $4.88 billion in reserves. Comparing these rounded disclosure figures, cash has decreased by $193.2 million, while reserves have decreased by nearly $50 million.

Item 7.01 in the document dated October 19th states that the dashboard on the Strategy website serves as a public disclosure channel, covering securities prices, Bitcoin holdings, purchase information, and company performance indicators. The document encourages investors to review the information published through this dashboard.