Strategy Repurchases $176M in Preferred Shares, Defends Bitcoin Strategy

Strategy, a bitcoin treasury company, has made its latest moves in the market. According to an 8-K filing with the Securities and Exchange Commission (SEC), Strategy did not buy or sell any bitcoin last week, leaving its total holdings unchanged at 845,050 BTC ($66.1 billion). This means that it still holds more than 4% of the total supply cap.

However, instead of buying or selling bitcoin, Strategy opted to repurchase 1.81 million STRC preferred shares for around $176.3 million and increased its digital credit securities repurchase program to $2 billion from $1 billion. The company funded these purchases via its USD Cash reserve, which had balances of $5.1 billion and $1.44 billion as of Sept. 7.

This move comes after CEO Phong Le said that the company's sale of roughly 7,000 BTC at $60,000-$65,000 was 'the right trade at the time' to fund preferred dividends. Strategy subsequently paused bitcoin purchases for about 10 weeks while it shored up its balance sheet.

Strategy also hit back against MSCI's latest proposal to exclude certain 'non-operating asset' companies from the MSCI Global Investable Market Indexes, calling it a disguised effort to remove digital asset treasury firms from the indices. In a letter signed by Saylor and Le, the company said that MSCI's consultation is discriminatory, arbitrary, and misguided.