Michael Saylor posted an ambiguous message stating he is “working privately on some Bitcoin matters.” Previously, Strategy disclosed a $22.1 million Bitcoin purchase, primarily funded by the sale of common stock.
- Saylor's post regarding "private handling" did not provide details on the purchase amount, transaction date, or financing information.
- The strategy purchased a total of 517 bitcoins, amounting to $43.6 million, over the two-week period covered by the last two disclosures.
- Of these Bitcoin purchases, approximately 98.6% of the funds came from the sale of common stock, with the remainder paid in cash.
- The total amount of STRC repurchased in the same period was $385.5 million, approximately 8.8 times the Bitcoin expenditure.
On October 23, Michael Saylor posted on X: "Just resolving a few Bitcoin matters behind closed doors."
This post includes a 14-second action video in a Matrix-style aesthetic featuring Saylor, but does not disclose the purchase amount, transaction date, or financing details. The post was published prior to Monday, October 26, while the company’s two previous disclosures occurred on the two preceding Mondays. Neither the caption nor the accompanying screenshot indicates when Strategy will release its next transaction update.
The Form 8-K filed by the company on October 19 shows that, between October 12 and 18, Strategy purchased 267 bitcoins at an average price of $82,900 per bitcoin, inclusive of fees and expenses. As of that time, its holdings amounted to 848,517 bitcoins, with a total acquisition cost of $64.02 billion and an average cost of $75,446 per bitcoin.
Saylor’s previous posts sometimes preceded announcements of bitcoin purchases. On October 11, he wrote, “There’s always room for more orange,” and the following day, Strategy disclosed the purchase of 250 bitcoins. This most recent Friday post does not indicate whether it relates to another acquisition.
The strategy saw a slight increase in Bitcoin purchases over the past two weeks.
In its announcement on October 12, Strategy disclosed that between October 5 and 11, the company spent $21.5 million to purchase 250 bitcoins at an average purchase price of $86,194 per coin. In the following week, an additional 17 bitcoins were purchased, costing an additional $600,000.
Based on these two disclosures, the number of bitcoins purchased increased by 6.8%, while dollar expenditures rose by approximately 2.8%. The average purchase price between the two reporting periods decreased by approximately 3.8%.
In total, 517 bitcoins were purchased over the past two weeks at a cost of $43.6 million. These figures reflect purchases completed as of October 18 and do not indicate how many bitcoins Strategy bought during the week of Saylor’s most recent post.
As previously reported by crypto.news, Strategy's earlier purchase of 250 bitcoins brought its total holdings to 848,250 bitcoins. The company's cumulative average purchase price across both disclosures rose from $75,444 to $75,446, with both figures including fees and expenses.
Common stock constitutes the primary source of funding for the latest Bitcoin purchase.
In the October 19 filing, Strategy stated that the funding for the most recent purchase included $22 million from the sale of 140,872 shares of MSTR common stock and $100,000 in existing U.S. dollar cash. No preferred stock sales appeared in that week’s ATM filing.
The disclosure from October 12 of the previous week showed that the sources of funds included $21 million from the sale of common stock and $500,000 in cash. Strategy sold 125,183 shares of common stock during this period.
Over the two periods combined, Strategy sold a total of 266,055 common shares, generating $43 million in net proceeds, and used $600,000 in cash to purchase Bitcoin. Thus, the proceeds from the sale of common shares covered approximately 98.6% of the total Bitcoin purchase expenditure.
These weekly disclosed transactions reveal that the company’s recent financing structure differs from its historical use of preferred securities. An October 21 report referenced Fidelity Digital Assets’ research on preferred stock financing channels, which included a cumulative total of 135,979 bitcoins received through this channel as of October 5.
Fidelity's figure pertains to the financing channels studied in the report, not the total holdings of Strategy. The report states that between March and May, purchases of over 95,000 bitcoins were financed through preferred stock issuances, raising more than $7 billion.
Fidelity reminds that Bitcoin-centric preferred shares are not equivalent to money market funds. Its report links the success of such products to Bitcoin’s long-term performance and the issuing company itself, and does not treat the stated income payments as a guarantee of investment returns.
STRC buyback volume exceeds Bitcoin spending
Between October 12 and 18, Strategy spent $193.1 million to repurchase STRC; previously, between October 5 and 11, it spent $192.4 million. Over the two weeks, the total amounted to $385.5 million, approximately 8.8 times the $43.6 million spent on Bitcoin during the same period.
In a statement on October 19, the company reaffirmed its long-term trading target range for STRC at $99 to $100. The company’s publicly stated policy is to conduct regular repurchases below $100, and management has indicated it will not issue new STRC shares below this level.
STRC is the floating-rate Series A perpetual stretch preferred stock of Strategy. The company’s October 19 chart lists a 12% dividend rate, payments made twice monthly, and an arrangement for voting on daily dividends as of October 28.
The board has expanded the authorization for preferred securities repurchases from $2 billion to $3 billion, inclusive of prior purchases and associated costs. Strategy stated that, as of October 18, the remaining authorized amount under this program was $1.16 billion.
Buybacks and dividends are funded by separate cash accounts.
The strategy's capital framework distinguishes between U.S. dollar reserves and general-purpose U.S. dollar cash. The former is used to support preferred stock dividends and debt interest, while the latter is used for purchasing Bitcoin and capital management.
Between October 12 and 18, the company used $193.1 million in cash to repurchase STRC and paid $45.5 million in preferred stock dividends from reserves. As of the end of the reporting period, cash balances totaled $4.473 billion, and reserves stood at $48.3 billion.
A week ago, Strategy reported $640.5 million in U.S. dollar cash and $4.88 billion in reserves. Compared to these rounded disclosure figures, cash decreased by $193.2 million and reserves decreased by nearly $50 million.
Item 7.01 in the October 19 filing states that the dashboard on the Strategy website is a public disclosure channel covering security prices, Bitcoin holdings, purchase activities, and company performance metrics. The filing encourages investors to review information published through this dashboard.