Saylor restarts “coin buying mode”! Strategy (MSTR.US) buys Bitcoin for the first time since August and spent 75.7 million dollars

The Zhitong Finance App learned that an 8-K document submitted on Monday by Strategy Inc. (MSTR.US), a Bitcoin treasury company owned by Michael Saylor, shows that in the week ending September 20, the company bought 950 bitcoins, spending 75.7 million US dollars, and the average price including fees was 79,670 US dollars/piece. This is their first Bitcoin purchase in three weeks. Previously, the company restored investor confidence by reshaping its balance sheet and building reserves.

The purchase brought Strategy's holdings to 846,000 bitcoins, with a cumulative purchase cost of US$63.80 billion, with an average price of US$75,416 per unit, which is only 1,363, or 0.2%, short of its historical record. According to BitcoinTreasury data, Strategy held 847,363 bitcoins on June 22, the largest position it has reported. If it continues for another two weeks at the rate of purchases this week, the company will set a new record.

According to information, it took Strategy two months to return to this level: summer sales reduced its holdings to 840,447 units on August 10, the lowest since May; since then, the company has increased its holdings by 5,553 units.

The average purchase price of $79,670 this time is $15,408 higher than the average price of $64,262 when 1,690 bitcoins were sold in the week ending August 9, and about $4,250 higher than its own mixed cost base. Strategy broke with its long-standing refusal to sell in May and sold 6,948 bitcoins during the summer, cashing out around $432.5 million. According to the June capital framework, the company allows sales of up to US$1.25 billion. Currently, about US$820 million of this amount remains unused.

In addition to buying Bitcoin, Strategy also bought back 1,771,238 STRC perpetual preferred shares at a cost of $174 million, up from $139.3 million the previous week; the company did not buy back any STRF, STRK, STRD, or MSTR shares. Bitcoin purchases cost less than half of what it spent to buy back its own preferred shares. The move is part of the company's effort to push STRC's price above face value so that these securities can once again be used to finance future Bitcoin purchases. The preferred stock traded just under $99, according to the documents.

Both expenses came from USD Cash — a pool of funds set up by management last month for Bitcoin purchases, buybacks, and general corporate use. As of September 20, USD Cash fell from $1.3 billion a week ago to $1.05 billion, drawing $249.7 million, which is almost exactly the same amount as the two purchases mentioned above. During the period, Strategy did not sell any shares through the Market Price Issuance (ATM) program; in August, it raised $333.7 million in a single week through this method. Another $57.4 million was withdrawn from the USD Reserve to support dividends and interest payments on preferred shares, reducing its balance to $5.04 billion. There is still an amount of approximately US$885.1 million under the Digital Credit Securities Repurchase Program, while another US$1 billion license covering MSTR's common shares has not been used.

At the time of this latest purchase, the Strategy financing model's environment had improved slightly. Bitcoin rebounded to an eight-month high of around $85,000, helping to boost Strategy's share price and push the company's market capitalization closer to the value of its Bitcoin holdings.

The company currently holds approximately $71 billion in Bitcoin. Saylor has reversed part of its Bitcoin purchase financing plan, as concerns surrounding shareholder dilution and liquidity have intensified due to the long-term downturn in digital assets. However, over the past year, Strategy's stock price still fell 55%.