Strategy bought another 250 BTC for approximately $21.5 million, lifting its holdings to 848,250 BTC. The company also repurchased STRC preferred shares, while TD Cowen kept its Strategy price target unchanged.
Strategy acquired 250 BTC for approximately $21.5 million at an average price of $86,194 per bitcoin between Oct. 5 and Oct. 11, according to a company press release. The purchase brings the bitcoin treasury company's total to 848,250 BTC.
Now the company holds 848,250 BTC ($70.6 billion), bought at an average price of $75,444 per bitcoin for a total cost of around $64 billion, according to co-founder and executive chairman Michael Saylor. Those holdings equal more than 4% of bitcoin's 21 million supply cap.
Stock sales and cash fund the purchase
The bitcoin was paid for with proceeds from at-the-market sales of its Class A common stock, MSTR, and its USD Cash reserve. Last week Strategy sold 125,183 MSTR shares for approximately $21 million, and USD Cash covered the remaining $0.5 million.
It also repurchased 1,932,145 STRC preferred shares for around $192.4 million under its digital credit securities repurchase program. As of Oct. 11, its USD Reserve stood at $4.88 billion and its USD Cash at $640.5 million.
Saylor teases the buy on X
Saylor posted a Strategy bitcoin acquisition tracker chart to X on Sunday with the caption "There’s always room for more orange." Similar posts have typically preceded acquisition announcements the following day, according to The Block.
Strategy's stock fell 7% last week, closing Friday at $154.34, while bitcoin dropped 4.5% over the same period.
TD Cowen holds its Strategy target
On Thursday, TD Cowen raised its bitcoin forecasts but kept its $260 price target on Strategy unchanged. The firm argues that dilution and the company's financial obligations will likely limit upside for shareholders.
Its analysts forecast bitcoin near $109,000 by year-end and $280,000 by 2029.
Source: The Block
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