Shares of Strategy (NASDAQ: MSTR) climbed 8% in Monday trading after the company disclosed it had resumed Bitcoin purchases, ending a two-week pause. The firm also continued its ongoing repurchase of its preferred stock, signaling a dual-pronged approach to capital allocation.
Fresh Bitcoin acquisition
According to a Form 8-K filed with the U.S. Securities and Exchange Commission, Strategy acquired 950 Bitcoin for approximately $75.7 million during the week ended September 20. The average purchase price, including fees and expenses, came to $79,670 per coin.
This latest addition lifts the company's total Bitcoin holdings to 846,000 BTC. Strategy has now spent roughly $63.8 billion on its Bitcoin treasury, with an average cost basis of $75,416 per coin, inclusive of fees and expenses.
The purchase comes as Bitcoin itself rallied past $85,000 for the first time in four months. At the time of publication, BTC was trading at $85,910. Based on that price, Strategy's holdings are sitting on an unrealized gain of approximately $8.9 billion relative to its average acquisition cost.
Preferred stock buyback continues
Alongside its Bitcoin accumulation, Strategy repurchased about 1.77 million shares of its Series A preferred stock (STRC) for $174 million during the same week. STRC shares edged up 0.44% to $98.94 in Monday's session.
The company said it still has $875.1 million remaining under its preferred-stock repurchase program and an additional $1 billion available under its MSTR share repurchase plan. Notably, Strategy reported no sales under its at-the-market (ATM) offering programs between September 14 and September 20, meaning it did not raise fresh equity capital during that period.
Cash reserves dip
Strategy's cash position declined as funds were deployed toward Bitcoin purchases, preferred-stock dividends, and interest payments. The company's USD Cash balance fell nearly 20% week-over-week to $1.1 billion from $1.3 billion. Its separate USD Reserve balance slipped to $5 billion from $5.1 billion after $57.4 million was used to cover preferred dividends and debt interest.
Combined, Strategy held approximately $6.1 billion across its USD Cash and USD Reserve balances as of September 20.
Market context
The move comes amid a broader crypto market uptick, with Bitcoin topping $81K earlier as total market cap jumped 4% to $2.78 trillion. Other digital assets have also seen gains, such as Arbitrum's ARB jumping 31% on tokenized asset momentum.
Strategy's latest purchase follows a period of inactivity in its Bitcoin buying, which had kept holdings unchanged. Executive Chairman Michael Saylor posted a Bitcoin acquisition tracker chart on X on Sunday with the caption “A little more orange,” a type of post that has historically preceded purchase announcements.
As of the latest data, Strategy remains the world's fifth-largest corporate Bitcoin holder. The company's aggressive accumulation strategy continues to draw attention from investors, though its reliance on debt and equity issuance to fund purchases remains a point of debate.
This article is for informational purposes only and does not constitute financial advice.
