Strategy Sells More Bitcoin To Fund Stock Buybacks

Strategy made headlines again on Monday after confirming another round of Bitcoin sales. According to a recent filing with the Securities and Exchange Commission, the company sold 1,690 coins for $108.6 million. This brings the corporate treasury holding down to 840,447 coins, marking a slight drop from the 842,138 coins held the previous week. The firm has not actively purchased new Bitcoin since June.

The cash generated from the sale went directly toward buying back 1,152,020 shares of its preferred stock, known by the ticker STRC, for $109 million. STRC previously dropped well below its stated $100 target value in June. Alongside the buyback, Strategy boosted its USD reserve to $4.65 billion, giving the company a larger cash buffer during the current market downturn.

Despite the recent sales, company leadership insists that the long term Bitcoin strategy remains unchanged. Chief Executive Officer Phong Le stated that he is not worried about the bear market. The company still holds the largest corporate Bitcoin treasury in the world by a wide margin, having spent over $63.5 billion on the asset since 2020.

Traders and market watchers should keep an eye on MSTR stock, which fell nearly three percent on Monday following the news. With Bitcoin trading roughly 50 percent below its October record, MSTR shares are down significantly from their all time high. Observers will watch to see if the firm resumes buying Bitcoin once market conditions stabilize.