Strategy founder Saylor hinted on Sunday that the company recently purchased more Bitcoin, but the SEC Form 8-K will not be released until Tuesday. At the end of September, Strategy bought only 334 BTC, yet spent $177 million to repurchase STRC preferred shares, with only 9.5% of the $5.41 billion raised in Q3 directly used to buy Bitcoin.
(Prior context: Strategy holds 848,000 BTC, this time buying only 334)
(Background supplement: STRC preferred shares plummet force Strategy to break its "never sell coins" mantra; Galaxy: wise but only addresses symptoms)
MicroStrategy founder Saylor hinted on Sunday that the company recently bought more Bitcoin, saying on X, "The orange thing can always hold more."
But he did not provide figures; investors will have to wait until at least Tuesday to confirm whether any additional purchases were made during the first week of October via the SEC’s 8-K filing, as Monday is Columbus Day holiday in the United States, with federal government offices closed.
Only bought 334 BTC at the end of September; the STRC buyback is the main event.
According to the SEC 8-K filing submitted on October 5, Strategy purchased 334 BTC between September 28 and October 4 for $28.7 million, bringing its total holdings to 848,000.
During the same period, Strategy repurchased approximately 1.77 million shares of STRC preferred stock for $176.3 million, which is 6.1 times the amount spent on BTC purchases during the same period.
Q3 raised $5.4 billion, but only $510 million was used to buy BTC
Independent analyst Shanaka Anslem Perera noted in the monthly newsletter on Saturday that Strategy raised $5.41 billion through new share issuance in Q3, yet ended September with only 1,666 more BTC than at the start of the quarter.
According to SEC filings, only 9.5% of the funding was directly used for Bitcoin purchases. Other uses include U.S. dollar reserves, cash, dividends, and preferred share buybacks.
Perera told Cointelegraph: "What investors should really be asking is what remains after the fundraising. For shareholders, the amount of Bitcoin per share is only part of the answer—cash is also important, but creditors and preferred shareholders have priority claims over assets ahead of common shareholders."
His view is straightforward: "The third-quarter Strategy raised billions by selling shares, but most of it was used to replenish cash reserves and satisfy preferred shareholders. Raising funds does not equal buying Bitcoin."
Store food first, then buy crypto?
Saylor's "room for more orange" can be understood as a signal: holding cash, ready to buy when the timing is right.
The strategy is clear: use equity financing to build up cash reserves, then use that cash to buy Bitcoin during price declines. If less than 10% of the $5.41 billion raised in Q3 was converted to BTC, it means the majority remains as cash or cash equivalents. With Bitcoin trading in the $80,000–$85,000 range, this capital represents potential buying pressure.
However, for Strategy’s shareholders, the preferred share buyback and high dividends present a problem: the company is allocating substantial funds to maintain its ownership structure, reducing the proportion truly invested in Bitcoin. If Bitcoin’s price rebounds but buybacks lag, the dilution effect of preferred shares on common shares will emerge, as seen with STRC’s sharp drop at the end of September.
Subsequent observation
The 8-K filing on Tuesday will provide answers for the first week of October. If Strategy increased its position before the holiday, it suggests management views the $80,000–$85,000 range as a buying opportunity; if not, Saylor’s implication was merely a routine operation to maintain market sentiment.
More importantly, consider Q4’s capital allocation: with billions in cash on hand, will Strategy shift more funds toward BTC, or continue repurchasing STRC to stabilize the preferred stock price? The answer to this question matters far more than weekly purchase volumes.
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