According to Woofun AI, Michael Saylor sent a signal to increase his holdings on the X platform, claiming that “there is always room to increase his holdings of Bitcoin-related assets,” and guided investors to pay attention to Sunday's developments. Affected by the US Columbus Day holiday, the SEC's official announcement is expected to be revealed after Tuesday. Strategy (MSTR.US)'s move aims to optimize the balance sheet through fund allocation to reserve space for subsequent Bitcoin purchases.
The capital flow at the end of September showed significant structural differences, and the scale of preferred stock repurchases far exceeded Bitcoin purchases. According to data compiled by Woofun AI, Form 8-K released on October 5 confirmed that between September 28 and October 4, Strategy spent $28.7 million to purchase 334 bitcoins, and its total holdings rose to 848,000; during the same period, it used $176.3 billion to repurchase 1.77 million STRC (STRC.US) preferred shares. By the end of September, Strategy had more funds to repurchase its preferred shares than its weekly Bitcoin That's six times the procurement budget.
Independent analyst Shanaka Anslem Perera explained on Saturday that Strategy raised US$5.41 billion by issuing new common shares in the third quarter, but only 9.5% was directly used to buy Bitcoin, increasing its year-end holdings by 1,666 units compared to the end of June. The remaining funds were used to build up dollar reserves, hold cash, pay dividends, and buy back preferred shares. Perera emphasized that debt and preferred shares have priority rights over common shares. The amount of bitcoins corresponding to each share is not the only indicator; cash reserves are also critical to shareholders' equity.
Speaking to Cointelegraph on Sunday, Perera stated that the multi-billion dollar capital raised was not immediately used to buy Bitcoin, but rather to boost cash reserves and protect the interests of preferred shareholders. Perera added that the cash reserves could be used for future purchases, and a strengthened balance sheet would benefit shareholders.