Strategy chair Michael Saylor teased investors watching Sunday for a signal of the company’s recent Bitcoin purchases with the message “There’s always room for more orange,” in a post on X.
However, any official notification via a filing with the US Securities and Exchange Commission won’t likely come before Tuesday, as federal offices will be closed on Monday for the Columbus Day holiday.
Strategy ended September by spending more than six times its weekly Bitcoin (BTC) buying budget on its repurchases of one of its preferred stocks. Strategy bought 334 Bitcoin (BTC) for $28.7 million between Sept. 28 and Oct. 4, bringing its holdings to exactly 848,000 BTC, according to an Oct. 5 8-K form SEC.
Over the same period, Strategy repurchased about 1.77 million shares of its STRC preferred stock for $176.3 million.
Raise cash now, buy Bitcoin later
To be sure, Strategy’s recent moves could be read as an indication that management can build up cash now and spend it on BTC later.
Independent analyst Shanaka Anslem Perera on Saturday noted that Strategy raised $5.41 billion from new common shares in the third quarter and ended the period with 1,666 more BTC than it held at the end of June.
In his monthly newsletter on Bitcoin and crypto, Perera wrote that Strategy’s SEC filings “allocate 9.5% of the raise directly to bitcoin purchases. Other disclosed uses included a dollar reserve, cash, dividends and preferred-share buybacks.”
“The question for investors is what the financing left behind. For a shareholder, bitcoin per share is only part of the answer. Cash counts too, while debt and preferred shares have claims ahead of common stock,” he wrote.
“During the third quarter Strategy raised billions through share sales, but much supported cash reserves and preferred shareholders. Raising capital does not necessarily mean buying bitcoin,” he told Cointelegraph on Sunday..
“That does not mean they stopped buying BTC. Cash retained can fund later purchases, and strengthening the balance sheet can benefit shareholders.”
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