MicroStrategy Chair Michael Saylor posted a message on X on Sunday suggesting continued Bitcoin purchases, writing "There's always room for more orange." Any official SEC filing disclosing recent Bitcoin activity is unlikely before Tuesday due to the Columbus Day federal holiday on Monday.
In September, MicroStrategy spent more than six times its typical weekly Bitcoin budget on preferred stock repurchases. Between September 28 and October 4, the company purchased 334 Bitcoin for $28.7 million, bringing its total holdings to exactly 848,000 BTC, according to an October 5 SEC 8-K filing. During the same period, MicroStrategy repurchased approximately 1.77 million shares of its STRC preferred stock for $176.3 million.
Capital Raised, Bitcoin Timing Unclear
MicroStrategy's recent financial moves may indicate a strategy of building cash reserves for future Bitcoin purchases rather than immediate accumulation. According to independent analyst Shanaka Anslem Perera, the company raised $5.41 billion from new common shares in the third quarter while increasing its Bitcoin holdings by 1,666 BTC compared to the end of June.
Perera's analysis of MicroStrategy's SEC filings found that the company allocated 9.5% of the capital raised directly to Bitcoin purchases, with other uses including dollar reserves, cash, dividends, and preferred-share buybacks. He noted that "cash retained can fund later purchases, and strengthening the balance sheet can benefit shareholders," suggesting that the company's significant cash position does not necessarily mean immediate Bitcoin spending.
The analyst emphasized that for common shareholders, evaluating MicroStrategy's strategy requires considering multiple factors beyond Bitcoin holdings per share, including cash reserves, debt, and claims held by preferred shareholders.
