MicroStrategy halted Bitcoin purchases in the week ending September 7, shifting strategy to repurchase its own preferred shares instead. The company spent $176.3 million buying back 1,810,885 STRC preferred shares, funded from its USD Cash pool, after ending a two-month Bitcoin buying drought the previous week.
The company bought and sold no Bitcoin during the period and made no sales under its at-the-market offering program. MicroStrategy's Bitcoin holdings remain at 845,050 BTC, purchased for $63.73 billion at an average cost of $75,412 per coin including fees.
MicroStrategy's board doubled the authorization for its digital credit securities repurchase program from $1 billion to $2 billion. As of September 7, $1.19 billion of the program remained available. A separate $1 billion authorization for common stock repurchases remains untouched.
The company's cash position stands at $5.10 billion in its USD Reserve, which covers preferred dividends and interest, and $1.44 billion in USD Cash available for Bitcoin purchases or other deployments. MicroStrategy raised $2 billion through stock sales in August and used those proceeds to create the USD Cash pool before purchasing $370 million in Bitcoin the following week.
In other developments, MicroStrategy's leadership asked MSCI to withdraw an index rule that would remove the company from its global benchmarks, characterizing the rule as discriminatory. Funds tracking MSCI indexes hold 3.1% of MicroStrategy's basic shares. MSCI's consultation on the matter closes at the end of September, with a decision expected October 16.
