Bitcoin treasury firm Strategy announced on Monday that it acquired 250 BTC for $21.5 million between October 5 and October 11, bringing its total holdings to a record 848,250 BTC. The company paid an average price of $86,194 per coin, including fees, for the recent purchase. This acquisition was primarily funded by selling approximately 125,000 shares of MSTR common stock through its at-the-market offering program, which raised $21 million, with the remaining $500,000 covered by cash reserves.
In addition to buying Bitcoin, Strategy repurchased 1,932,145 shares of its variable-rate Stretch preferred stock (STRC) for $192.4 million during the same period. This buyback leaves $354.8 million available under the company's preferred share repurchase program. As of October 11, Strategy held $4.88 billion in a U.S. dollar reserve designated for preferred dividends and debt interest, alongside $640.5 million in general cash reserves. The company’s total Bitcoin portfolio has been acquired for a cumulative $64 billion at an average cost of $75,444 per coin.
The announcement follows a week in which Strategy reported a $21 billion third-quarter gain and executed previous purchases of $29 million in Bitcoin and $176 million in STRC repurchases. CEO Phong Le recently defended the potential sale of Bitcoin as a strategic move, noting the company could sell up to $1.25 billion of its holdings under its digital credit capital framework. Despite the continued accumulation, prediction market participants currently assign only a 5% probability to Strategy surpassing one million BTC in holdings by year-end.
Strategy’s simultaneous expansion of its Bitcoin treasury and aggressive repurchase of preferred stock illustrates a dual-track capital allocation strategy designed to balance asset accumulation with liability management. By funding new Bitcoin buys through equity sales rather than depleting cash reserves or issuing new debt, the company maintains liquidity flexibility while continuing to grow its core asset base. The significant STRC buybacks suggest an effort to reduce outstanding preferred obligations, potentially lowering future dividend burdens and tightening the supply of these securities, which may influence their trading dynamics relative to common stock.
However, the reliance on at-the-market offerings to fund acquisitions introduces dilution risks for common shareholders, even as the company highlights record holdings. The existence of a substantial USD reserve set aside specifically for dividends indicates a prioritization of financial stability and creditor confidence amidst volatile crypto markets. Investors should monitor whether the pace of Bitcoin accumulation continues to outstrip the rate of equity issuance, as well as how the company navigates the tension between holding assets long-term and the stated willingness to sell portions of its stack under specific capital frameworks.
