Strategy Inc. (NASDAQ:MSTR) shares are trading lower Monday after the company disclosed in an SEC filing that it refrained from buying bitcoin last week and instead repurchased $204.9 million of its STRC preferred stock, with Bitcoin trading near $80,000.
- Strategy stock is feeling bearish pressure. What’s pressuring MSTR stock?
Strategy Spends $204.9 Million Buying Back STRC Preferred Stock
In an 8-K filed Monday, Strategy said it did not sell any shares under its at-the-market offering program and did not buy or sell any Bitcoin (CRYPTO:BTC) from Oct. 19 to Oct. 25.
The company repurchased 2,068,459 shares of its variable rate Series A Perpetual Stretch Preferred Stock, known as STRC, for $204.9 million, funded with cash. About $956.8 million remains available under its preferred stock repurchase program, and $1.0 billion remains available under its common stock repurchase program.
Strategy holds about 848,517 bitcoin, acquired for $64.02 billion at an average of $75,446 per bitcoin. As of Oct. 25, its USD Reserve, which supports dividends on its preferred stock and interest on its debt, was $4.83 billion, and its cash balance was $242.4 million.
Bitcoin Is Trading Near $80,000 as Investors Await Economic Data
Strategy’s shares tend to move with bitcoin, since its holdings are the core of the business. Bitcoin is trading about 0.14% lower over 24 hours at $80,099.36, as investors await economic data to gauge whether the Federal Reserve will raise rates in October.
A rate hike would raise borrowing costs and tighten financial conditions, which tends to weigh on risk assets such as bitcoin, and hot data could renew inflation concerns and raise the odds of a hike.
Strategy Shares Trade Lower
MSTR Price Action: At the time of writing, Strategy shares are trading 3.36% lower at $141.10, according to data from Benzinga Pro.
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