TLDR
- Strategy (MSTR) stock traded at $142.80 in Monday premarket, down 2%, after a 7% drop last week to $146.02.
- The company bought no Bitcoin from Oct. 19 to Oct. 25, ending a five-week buying streak.
- Holdings remain at 848,517 BTC, bought at an average price of $75,446 per coin.
- Strategy spent $204.9 million repurchasing 2.07 million STRC preferred stock, cutting its USD Cash balance by 46% to $242.4 million.
- MSCI’s new rules for “non-operating” companies could lead to MSTR being dropped from its indexes.
Strategy (MSTR) stock traded at $142.80 in Monday premarket, down about 2%. It closed Friday at $146.02.
MSTR fell 7% last week. Bitcoin slipped only 1% over the same stretch.
Strategy made no Bitcoin purchases or sales between Oct. 19 and Oct. 25, according to an 8-K filing with the SEC. That ends a five-week buying streak.
Holdings sit at 848,517 BTC. The coins cost about $64.02 billion, an average of $75,446 each.
Bitcoin traded near $79,992 at Monday’s US equities open. At that price, the stack is worth about $67.9 billion, or more than 4% of total supply.
Cash Went Toward STRC Buybacks
The Bitcoin wallet sat idle, but the checkbook was busy. Strategy spent $204.9 million repurchasing 2.07 million STRC preferred stock between Monday and Friday.
The money came from the USD Cash balance. It fell 46% to $242.4 million from $447.3 million.
The separate USD reserve held at $4.83 billion. STRC edged down 0.01% to $99.35 in premarket trading.
October has been lopsided so far. Strategy has spent about $664 million on STRC buybacks, compared with $72.3 million for 851 BTC.
The pause came as Bitcoin slid toward $80,000 last week. It had reached $84,777 on Wednesday, according to CoinGecko.
MSCI Index Risk
Earlier this month, MSCI said it will adopt new rules for “non-operating” companies. The rules could ultimately lead to MSTR being excluded from its indexes.
Steve Lee, co-founder of Neoclassic Capital, told The Block that weaker demand from index investors could push the stock closer to the value of its Bitcoin. That would make raising money through new stock sales less appealing.
Strategy still leads the roughly 200 public companies that use a Bitcoin acquisition model. Metaplanet holds 44,000 BTC and Twenty One holds 43,514 BTC.
Strive holds 43,000 BTC and MARA holds 35,577 BTC, according to Bitcoin Treasuries data. Those four round out the top five.
Bitcoin briefly dropped below $80,000 earlier on Monday. MSTR was at $142.80 in premarket trading.
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