Strategy Inc. (MSTR) has expanded its Bitcoin (BTC) holdings by acquiring 267 BTC for approximately $22.1 million between October 12 and October 18. The purchase was made at an average price of $82,900 per Bitcoin, bringing the company's total holdings to 848,517 BTC. This latest acquisition was funded through proceeds from the sale of 140,872 MSTR shares and the company's USD Cash reserve.
The company's total Bitcoin holdings now represent over 4% of Bitcoin's total supply, acquired at an average price of $75,446 per Bitcoin. Strategy also repurchased 1,938,780 million STRC preferred shares for around $193.1 million and used $45.5 million of its USD Reserve to fund dividends on its preferred stock. As of October 18, Strategy's USD Reserve and USD Cash balances stood at $4.83 billion and $447.3 million, respectively.
Michael Saylor, co-founder and executive chairman of Strategy, recently outlined his vision for a dollar-pegged, Bitcoin-backed stablecoin during the ParaFi Investor Day. He suggested that this 'perfected' digital money could offer yields of 6% to 8%, representing the next evolution in digital capital and credit products. However, analysts at K33 have cautioned that Strategy's preferred stock financing model may ultimately cost it Bitcoin due to rising dividend obligations.
Strategy's stock fell 11.3% last week, closing Friday at $136.83, while Bitcoin declined 2.6% over the same period. Despite this, Saylor hinted at further acquisitions with a post on Sunday, stating, 'We found room for more orange,' referencing the company's Bitcoin acquisition tracker chart.