'We found room for more orange': Michael Saylor's Strategy buys another 267 bitcoin for $22 million

Bitcoin Bitcoin (BTC) treasury company Strategy Strategy, Inc. (MSTR) bought another 267 BTC for approximately $22.1 million at an average price of $82,900 per bitcoin between Oct. 12 and Oct. 18, according to a Monday filing with the Securities and Exchange Commission.

Strategy's total bitcoin holdings reached 848,517 BTC following the latest acquisitions, bought for a total cost of $64 billion at an average price of $75,446 per bitcoin, equivalent to more than 4% of bitcoin's total supply.

The acquisitions were made using proceeds from at-the-market sales of Strategy's Class A common stock, MSTR, and its USD Cash reserve. Strategy sold 140,872 MSTR shares for approximately $22 million last week, with $18.79 billion worth of MSTR shares remaining available under that ATM program, according to the filing. Strategy used its USD Cash holdings to cover the remaining $0.1 million purchase cost.

Strategy also repurchased 1,938,780 million STRC preferred shares in the same period for around $193.1 million, using the company's USD Cash reserve. The firm also used $45.5 million of its USD Reserve to fund dividends on its preferred stock.

As of Oct. 18, Strategy's USD Reserve and USD Cash balances were $4.83 billion and $447.3 million, respectively, the firm said. The firm also announced that its board of directors approved an increase in the aggregate purchase price authorized under its digital credit securities repurchase program from $2 billion to $3 billion.

'Perfected' digital money

At the ParaFi Investor Day last week, Strategy's co-founder and executive chairman, Michael Saylor, outlined his vision for "perfected" digital money, a dollar-pegged, bitcoin-backed stablecoin. He said it could offer yields of 6% to 8% and represents the next step for digital capital and digital credit products.

Earlier in the week, MSCI said it will adopt new rules that could lead to Strategy being excluded from its indexes, alongside other treasury companies like Metaplanet and Sharplink that could fall foul of its position against "non-operating" companies.

Meanwhile, analysts at K33 warned that Strategy's preferred stock financing model may ultimately cost it bitcoin, given its rising dividend obligations from STRC. Head of Research Vetle Lunde argued that common stock issuance is a more efficient way to fund future bitcoin purchases.

'We found room for more orange'

Saylor had posted a Strategy bitcoin acquisition tracker chart on Sunday saying, "We found room for more orange," indicating the potential acquisition announcement ahead of time.

Strategy is the largest among 198 public companies that have acquired bitcoin. Metaplanet, Tether-backed Twenty One, Strive, and MARA make up the remainder of the top five, with 44,000 BTC, 43,514 BTC, 35,595 BTC, and 35,577 BTC, respectively, per Bitcoin Treasuries data.

Strategy's stock fell 11.3% last week, closing Friday at $136.83, according to The Block's MSTR price page. Bitcoin declined 2.6% over the same period.