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Last week, Bitcoin treasury company Strategy purchased 250 bitcoins for $21.5 million, at an average price of $86,194 per bitcoin, increasing its holdings to 848,250 bitcoins.
The strategy primarily funded this Bitcoin purchase by selling $21 million in MSTR common shares, while maintaining $5.5 billion in U.S. dollar assets.
The company said on Monday that it purchased 250 bitcoins last week and repurchased $192.4 million in STRC preferred shares.
According to the company’s announcement, the Bitcoin treasury firm purchased these bitcoins between October 5 and October 11 for $21.5 million, with an average cost of $86,194 per bitcoin including fees. The company now holds a record-high 848,250 bitcoins, with a total acquisition cost of $64 billion, averaging $75,444 per bitcoin.
Last week, Strategy purchased $290 million in Bitcoin and repurchased $1.76 billion in STRC, while announcing a third-quarter profit of $21 billion.
Dollar reserves of the strategy
As of October 11, Strategy held $4.88 billion in U.S. dollar reserves for preferred stock dividends and debt interest, along with $640.5 million in cash for broader purposes such as purchasing Bitcoin.
The strategy initially established this U.S. dollar reserve with $1.44 billion, and later created a separate U.S. dollar cash pool after raising $2 billion from the sale of MSTR shares.
The company also proposed accruing dividends on its preferred shares on a 365-day annual basis and indicated it could sell up to $1.25 billion in Bitcoin under its digital credit capital framework.
Strategy CEO Phong Le defended the sale of Bitcoin in September, calling it "the right trade." Weeks later, the company set a new holding record by purchasing Bitcoin for $143 million at month-end. Despite the increased buying pressure, traders on Myriad, a prediction market owned by Dastan, the parent company of Decrypt, assign only a 5% probability that the company’s Bitcoin holdings will exceed 1 million by year-end.