The company has added another 1,665 Bitcoin to its portfolio, which moves its total holdings beyond a previous high of 847,666 coins. The transaction cost $142.7 million, with the firm paying an average price of $85,681 per coin. That now puts the total worth of the holding at $63.95 billion, based on an average price of $75,437 per Bitcoin.
A Monday filing with the Securities and Exchange Commission announced that the company repurchased $151.7 million of its STRC preferred stock at the same time as its Bitcoin purchase.
Between September 21 and September 27, Strategy snapped up 1,665 BTC. That pushed its Bitcoin stash to a fresh high of 847,666 BTC. Before that, the firm owned 847,363 BTC, a number posted June 22 by BitcoinTreasuries.
Before it resumed buying Bitcoin in August, the company sold the cryptocurrency during the summer. It sold 6,948 BTC between May and August, as previously disclosed.
Funding the Purchase
Strategy sold MSTR common stock through its at-the-market offering program to fund the purchase, selling 1.47 million MSTR shares during the week and bringing in $246.2 million in net proceeds.
The total was divided between two uses: $142.7 million went to Bitcoin purchases, while $103.5 million was put toward repurchasing STRC preferred stock.
The Preferred Stock Buyback
Strategy bought back 1.53 million shares of its Variable Rate Series A Perpetual Stretch Preferred Stock, with a ticker of STRC, at a cost of $151.7 million.
Hundreds of millions of dollars have already been spent by the company buying back STRC, with the aim of taking advantage of the preferred stock trading below its stated amount. The latest filing states that $723.5 million remains available under its digital credit securities repurchase program.
Last Week’s Dividend Proposal
The firm put forward a plan last week for daily dividend buildup on its preferred stock, which covers STRF, STRC, SREK and STRD, with the aim of reducing price swings.
The Dollar Position
The USD assets were reported at $6.02 billion as of September 27, with the breakdown showing a $5.02 billion USD Reserve and $1 billion in USD Cash, according to the 8-K.
A dedicated dollar fund exists for paying dividends on preferred stock and interest on debt. A separate pot was created last month, known as USD Cash, and it may be used for buying Bitcoin, building up the reserve, or other capital-management purposes.
The USD Cash balance was used to fund STRC repurchases, costing $48.1 million of USD, while a separate $22.1 million from the USD Reserve went toward paying preferred-stock dividends during the same period.
What the Company Has Said
Strategy has previously described STRC repurchases as part of its broader capital-allocation strategy. The company has also said its capital framework allows it to sell up to $1.25 billion worth of Bitcoin to fund its USD Reserve, preferred-stock dividends and interest expenses, as well as repurchases of MSTR or its preferred securities.
The Record Stands
After a summer focused on selling Bitcoin and growing its dollar reserves, Strategy has started buying again. Between May and August, the company sold 6,948 BTC, per prior disclosures, and is now rebuilding its holdings.
The most recent weekly report shows Strategy buying Bitcoin instead of selling it for a second week running, and with 847,666 BTC on its balance sheet, the company’s holdings of the cryptocurrency have reached their highest level ever.
The Numbers at a Glance
- Bitcoin purchased: 1,665 BTC
- Cost: $142.7 million
- Average price: $85,681 per coin
- Total holdings: 847,666 BTC
- Total value: $63.95 billion at an average price of $75,437 per Bitcoin
- Preferred stock repurchased: $151.7 million
- USD assets: $6.02 billion ($5.02 billion USD Reserve + $1 billion USD Cash)
Balancing Two Goals
The company faces a balancing act between two goals. It wishes to expand its Bitcoin holdings, an asset central to its identity. At the same time, it seeks to cut back its outstanding preferred stock, a liability that restricts its freedom to act.
A substantial war chest is at the company’s disposal, consisting of $6.02 billion in USD assets that can be used for Bitcoin purchases, dividend payments and capital management purposes. On top of that, there are still $723.5 million left under the digital credit securities repurchase program, which gives the company the capacity to continue buying back STRC for some time.
It pays to keep an eye on the preferred stock’s daily dividend proposal. No word yet from the company on whether it has been accepted.
The Summer Sell-Off
A significant reduction in holdings occurred over the summer months. Between May and August, selling of 6,948 BTC brought down the size of the company’s largest asset.
The Record Is Official
The official record stands: Strategy now holds more Bitcoin than it ever has before. The firm has moved quickly to reach that position, bringing together Bitcoin purchases with preferred stock buybacks in the same week.
SEC filings reveal a careful strategy. The firm finances acquisitions through MSTR sales, backs STRC repurchases with its USD Cash, and covers dividend payouts by tapping into its USD Reserve. Every deal is logged in the public record, which offers investors a transparent look at how the company handles its money.
The Road Ahead
Strategy has not announced a new Bitcoin target. The record is a milestone. The company has said it can sell up to $1.25 billion worth of Bitcoin to fund its USD Reserve, preferred-stock dividends and interest expenses, as well as repurchases of MSTR or its preferred securities.
The design grants Strategy room to move. It pairs purchases of Bitcoin with repurchases of preferred stock at the same time. These two actions support each other, with the Bitcoin positions serving as a store of value that can be drawn upon if necessary.
What We Know Now
All the essential details are confirmed. Strategy now holds 847,666 BTC, a rise above the former high of 847,363 BTC. Its balance stands at $6.02 billion in USD assets, with $723.5 million still left to go under its digital credit securities repurchase plan. The company is purchasing Bitcoin while also buying back preferred stock simultaneously.
The firm has demonstrated its ability to act quickly when it chooses to, purchasing 1,665 coins within a single week, with enough money on hand to carry out further acquisitions.
The company holds more Bitcoin now than it ever has, and the record stands. Whether that position endures is the question facing the weeks ahead.
Source material: “Strategy Sets New BTC Holdings Record After $143M Bitcoin Purchase,” Decrypt.
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