Shares of Strategy (MSTR) advanced 2.7% to $140.53 on Monday after the company, formerly known as MicroStrategy, enlarged its preferred stock repurchase program to $3 billion from $2 billion. The expansion increases the firm's capacity to buy back outstanding digital credit securities while it continues to accumulate Bitcoin.
The announcement accompanied Strategy's latest Bitcoin acquisition, which added 267 BTC to its treasury during the week ended October 18. The company, led by executive chairman Michael Saylor, said the enlarged program covers its preferred securities, including STRC, STRF, STRD, and STRK.
Initially set at $1 billion on June 29, the repurchase authorization was doubled to $2 billion on September 8. With the latest increase, approximately $1.16 billion remains available under the program.
Expanded buyback flexibility
The larger authorization gives Strategy additional flexibility to repurchase its outstanding preferred securities. However, the $3 billion figure represents the program's total authorized size rather than a commitment to spend the entire amount. The company disclosed that it had repurchased $193 million of its STRC preferred stock, a variable-rate security issued by Strategy.
This program allows Strategy to manage its digital credit securities while continuing to pursue its Bitcoin treasury strategy. Its ability to execute further repurchases and fund additional Bitcoin acquisitions will depend on available resources and market conditions.
As of October 18, Strategy reported a USD Reserve balance of $4.83 billion and USD Cash of $447.3 million, together amounting to approximately $5.28 billion in US dollar assets.
Bitcoin holdings reach 848,517 BTC
Strategy acquired 267 Bitcoin between October 12 and October 18 for a total purchase price of $22.1 million, with an average acquisition price of $82,900 per Bitcoin. The purchases were funded by selling 140,872 Class A shares, generating net proceeds of $22 million.
The latest acquisition brought Strategy's total holdings to 848,517 BTC, purchased for an aggregate cost of $64.02 billion, representing an average price of $75,446 per Bitcoin. Bitcoin was trading at $82,175 at the time of writing.
This purchase was relatively small compared with Strategy's overall holdings, while the expanded repurchase program increases the amount available for potential buybacks of its preferred securities.
STRC price remains in focus
The price of STRC is another factor investors are watching as Strategy assesses its financing options. Matthew Sigel, VanEck's head of digital assets research, noted on X that STRC briefly traded at $99.90 last week before falling to $97.72 following MSCI's finalised rules concerning the removal of MSTR from its indexes.
According to Sigel, preferred-stock indexes have limited representation from MSCI, making STRC's ability to return to its $100 par value an important level to monitor. He said trading around par could help Strategy resume larger Bitcoin purchases funded through its at-the-market (ATM) offering.
This article is for informational purposes only and does not constitute financial advice.
