Strategy Chair Michael Saylor teased investors watching Sunday for a signal from the company’s recent bitcoin purchases with the message “there’s always room for more oranges” in a post on X.
However, an official notification via a filing with the US Securities and Exchange Commission likely won’t come before Tuesday, as federal offices will be closed Monday for the Columbus Day holiday.
The strategy culminated in September with a weekly bitcoin (BTC) purchase spending six times the budget to repurchase one of his preferred stocks. The strategy bought 334 bitcoins (BTC) for $28.7 million between Sept. 28 and Oct. 4, bringing its holdings to exactly 848,000 BTC, according to the Oct. 5 8-K form.
At the same time, the strategy repurchased approximately 1.77 million shares of its STRC preferred stock for $176.3 million.
Collect cash now, buy bitcoins later
To be sure, recent moves in the strategy can be read as an indication that management can generate cash now and spend it on BTC later.
Independent analyst Shanaka Ansalem Perera noted on Saturday that the strategy raised $5.41 billion in new common shares in the third quarter and ended the period with 1,666 more BTC than at the end of June.
on her period Newsletter In Bitcoin and Crypto, Perera wrote that the strategy’s SEC filings “allocate 9.5% of direct growth to bitcoin purchases. Other disclosed uses included a dollar reserve, cash, dividends and preferred-share buybacks.”
“The question for investors is what financing leaves behind. For a shareholder, bitcoin per share is only part of the answer. Cash also counts, while debt and preferred shares claim ahead of common stock,” he wrote.
“Billions were raised through share sales during the third quarter strategy, but heavily supported by cash reserves and preferred shareholders. Raising capital does not mean buying bitcoin,” he told Cointelegraph on Sunday..
“This does not mean they have stopped buying BTC. Holding cash can fund further purchases and strengthening the balance sheet can benefit shareholders.”
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