Strategy Spent 3 Times More on Preferred Share Buybacks Than on Bitcoin Purchases Recently
Summary
- Santiment said Strategy bought 3466 BTC for about $290 million from Sept. 14 through Oct. 18.
- During the same period, it spent about $890 million on preferred share buybacks, roughly three times the amount it spent on Bitcoin purchases.
- Santiment said Strategy’s board raised the cap on its preferred share buyback program from $2 billion to $3 billion, while its U.S. dollar cash holdings fell from $1.3 billion to $447.3 million.
Forecast Trend Report by Period
Strategy has recently deployed more capital to repurchasing its preferred shares than to buying Bitcoin, according to an analysis.
Crypto analytics firm Santiment said on X on Oct. 20 that its review of Strategy’s recent 8-K filings showed most of the company’s spending since mid-September had gone to preferred share buybacks.
According to Santiment, Strategy bought 3,466 Bitcoin for about $290 million from Sept. 14 through Oct. 18.
By contrast, it spent about $890 million on preferred share buybacks over the same five-week period. That was roughly three times its Bitcoin purchases. Strategy’s board on Oct. 19 also raised the limit on the preferred share buyback program to $3 billion from $2 billion.
Cash used largely to fund those buybacks also fell sharply. The company’s U.S. dollar cash holdings dropped to $447.3 million on Oct. 18 from $1.3 billion on Sept. 13.
Santiment said accumulation by large Bitcoin wallets over the same period was led by investors other than Strategy. Wallets holding between 10 and 10,000 Bitcoin added about 88,987 Bitcoin from Sept. 19 through Oct. 19.
Of that total, Strategy bought 2,516 Bitcoin from Sept. 21 through Oct. 18, accounting for less than 3% of the accumulation by large wallets.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.