MicroStrategy Repurchases $176.3 Million in Preferred Stock Instead of Buying Bitcoin
MicroStrategy (NASDAQ: MSTR) has allocated $176.3 million to repurchase its own preferred stock, STRC, instead of investing in Bitcoin this week. The company used existing cash reserves for the buyback and did not issue new securities or purchase common shares. This move follows a recent pause in BTC acquisitions during which MicroStrategy sold 7,000 bitcoins before buying back fewer at higher prices. The preferred stock repurchase was executed at an average discount of about 13% to its $100 par value and funded through the company’s expanded Digital Credit Securities Repurchase Program. The program has now been increased from $1 billion to $2 billion, with approximately $1.19 billion remaining after this week's purchase. MicroStrategy currently holds a Bitcoin position of 846,000 BTC that is sitting on an estimated $8.3 billion unrealized loss. Despite recent gains in its stock price over the past month, MSTR has declined by nearly 58% year-to-date.
Tickers: $MSTR
Topics: Bitcoin investment strategy MicroStrategy preferred stock buyback