TLDR MSTR rebounds 2.09% in premarket trading after Friday’s steep 9.56% decline. Strategy raises its preferred securities repurchase authorization to $3 billion. Strategy buys 267 BTC for $2
Strategy shares rebounded in Monday’s premarket session after the company raised its preferred securities buyback program to $3 billion. The rise followed a sharp Friday selloff and coincided with another bitcoin purchase disclosed by the company. An October 19 regulatory filing detailed share sales, bitcoin purchases, preferred stock repurchases, and remaining cash resources.
Strategy Inc (MSTR) rose 2.09% to $139.69 in Monday’s premarket trading, reversing some of Friday’s heavy losses. The stock had closed at $136.83 on October 16 after falling 9.56%. The early recovery followed new disclosures about the company’s capital management and bitcoin purchases.
Strategy Inc, MSTR The board increased its digital credit securities repurchase authorization from $2 billion to $3 billion. By October 18, Strategy had $1.16 billion still available under that expanded authorization. The program covers preferred securities, separate from common stock repurchases.
During October 12–18, Strategy repurchased 1,938,780 STRC preferred shares for $193.1 million. It repurchased no STRF, STRK, STRD, or MSTR common shares during the same week. Meanwhile, Strategy retained $1 billion under its separate MSTR common stock repurchase program.
Strategy bought 267 additional bitcoin for $22.1 million that week, including transaction fees. The company paid an average of $82,900 per bitcoin for the purchase. Consequently, its holdings reached 848,517 BTC as of October 18.
Strategy funded the purchase mainly through its at-the-market common stock offering. It sold 140,872 MSTR common shares, raising $22 million after sales commissions. Another $100,000 came from cash to cover the remaining purchase cost.
Strategy spent $64.02 billion assembling its current bitcoin holdings, including fees and transaction expenses. Across its total position, the average purchase price stood at $75,446 per coin. Common stock sales and other financing have supported the company’s bitcoin treasury strategy.
Strategy held $4.83 billion in its dollar reserve at the reporting period’s end. It also held $447.3 million in separate cash for corporate purposes. Together, these two balances reached roughly $5.28 billion and supported the company’s wider capital management.
The STRC repurchases drew on general cash holdings rather than the company’s designated dollar reserve. The reserve supplied $45.5 million for preferred stock dividends during the week. Meanwhile, proceeds from new MSTR share sales funded nearly all bitcoin purchases.
Strategy retained $18.79 billion in MSTR stock issuance capacity under its offering program. It sold no preferred shares through the program during October 12–18. These financing options give Strategy several ways to manage securities obligations and fund additional bitcoin purchases.
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