MSTR Stock Falls as Strategy Pauses Bitcoin Purchases & Buys Back $205M in STRC Shares

Varinder Singh
Updated
Varinder Singh

Varinder Singh

Independent Sr. Journalist
Expertise : Bitcoin, Crypto, Global Macro, DeFi, Blockchain, Web3, US Stocks, AI, Regulations and Lawsuits, & More
Varinder is a seasoned leader in the fintech and crypto media with over 13 years of experience, including over 7 years dedicated to blockchain, crypto, and Web3 developments. He is known for covering high-impact and quality news stories for publishers such as CoinGape, The Coin Republic, and The Crypto Times, while perfecting and training multiple journalists during his tenure. Being a Master of Technology degree holder, analytics thinker, and tech enthusiast, he has shared his knowledge of disruptive technologies in over 6000 news articles and papers.
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MSTR Stock Falls as Strategy Pauses Bitcoin Purchases & Buys Back $205M in STRC Shares

Highlights

  • Michael Saylor's Strategy sold no shares under its ATM offering program or made any Bitcoin purchases.
  • The Bitcoin treasury company repurchased $205 million in STRC preferred shares.
  • MSTR and STRC stock prices fall as Bitcoin remains under pressure ahead of FOMC and US PCE inflation data.

Michael Saylor’s Strategy pauses Bitcoin purchases after two consecutive weeks of buying. The company repurchased $205 million in STRC preferred shares in the latest trade. MSTR stock plunges due to the Bitcoin buying pause and broader selloff pressure.

Strategy Pauses Bitcoin Purchases

Strategy, the largest corporate Bitcoin holder, sold no shares under its at-the-market (ATM) offering program for Bitcoin purchases last week, according to an official announcement on October 26.

The company’s total Bitcoin holdings remained at 848,517 BTC, acquired for an aggregate of $64.02 billion at an average price of about $75,446 per BTC. It is worth almost $67.88 billion at the current market price.

However, Michael Saylor’s Strategy continued its stock buybacks. It repurchased 2,068,459 STRC preferred shares worth almost $205 million. Notably, $956.8 million of Strategy’s preferred stock remains available under its digital credit securities repurchase program.

Strategy also has a $1 billion aggregate purchase price of MSTR stock available under its MSTR Stock repurchase program.

Executive Chairman Michael Saylor took to X to reach out to shareholders and the broader crypto community about the latest pause in Bitcoin purchases. The company has $5.1 billion in USD assets. This includes $4.83 billion in USD Reserve and $242.4 million in USD Cash.

Saylor added that “USD Duration is 3.4 yrs and STRC’s BTC Credit is 54 bps assuming 10% BTC ARR, 40% BTC Vol, and a BTC price of $81,200.”

MSTR and STRC Stock Price Performance

MSTR stock price has given an almost 5% return last week, closing at $146.01 on Friday. In premarket trading today, Strategy stock has plunged 1.95% to $143.16. Trading volume continued to remain lower than average amid macro pressure and market volatility.

Clear Street raised its price target for MSTR stock to $211 and maintained a buy rating. The firm cited how the Bitcoin treasury firm Strategy has improved its financial position through STRC repurchases and increased USD reserves.

STRC stock inches toward $100 par value after a 1.25% surge last week. The stock is moving near $99.35 in premarket trading on Monday.

STRC stock price
STRC Stock Price. Source: Google Finance

Bitcoin price holds near $80,000 after the latest rebound as investors await the FOMC and US PCE inflation data this week. The 24-hour low and high were $79,331 and $80,825, respectively. Trading volume has climbed slightly by 10% as traders await cues on market direction this week, while remaining cautious.

Also Check: Best Regulated Prediction Markets in the US

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

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About Author
About Author
Varinder is a seasoned leader in the fintech and crypto media with over 13 years of experience, including over 7 years dedicated to blockchain, crypto, and Web3 developments. He is known for covering high-impact and quality news stories for publishers such as CoinGape, The Coin Republic, and The Crypto Times, while perfecting and training multiple journalists during his tenure. Being a Master of Technology degree holder, analytics thinker, and tech enthusiast, he has shared his knowledge of disruptive technologies in over 6000 news articles and papers.