Strategy Skips Bitcoin Buying to Repurchase Preferred Stock Amid MSCI Uncertainty
Strategy Inc., parent company of MicroStrategy (MSTR), has made a significant move by repurchasing $139.3 million worth of its preferred STRC stock between September 8 and September 13. This decision comes at a time when the company's common stock is down 4.7% from the previous week, closing at $130.97 on Friday.
The funds for this repurchase were taken entirely from Strategy's USD Cash reserve, which stood at $1.3 billion as of September 14, down from $1.44 billion the prior week. Notably, the company did not make any purchases or sales of Bitcoin (BTC) during this period, despite holding a significant stash of 845,050 BTC valued at $65.7 billion.
Strategy's decision to repurchase preferred stock instead of buying more Bitcoin may be influenced by an upcoming ruling from MSCI on October 16. The proposal could potentially remove companies classified as non-operating from global equity benchmarks, leading to a shift in billions of dollars in passive fund flows tied to Strategy's current benchmark weighting.
Michael Saylor has ceased posting his weekly Bitcoin tracker updates, which previously signaled upcoming purchases. This move may indicate that the company is taking a more cautious approach to its investments or is waiting for a favorable market condition to make further BTC purchases.