Michael Saylor has signaled on the X platform that he intends to increase holdings, declaring that there is "always room to add more Bitcoin-related assets," and directing investors to watch for developments on Sunday.
Due to the U.S. Columbus Day holiday, formal announcements from the U.S. Securities and Exchange Commission are expected to be disclosed after Tuesday.
This move by Strategy (MSTR.US) is aimed at optimizing its balance sheet through capital allocation, reserving room for future Bitcoin purchases.
Capital flows at the end of September showed a notable structural divergence, with preferred stock buybacks far exceeding Bitcoin purchases.
Data compiled by Woofun AI showed that an 8-K filing released on October 5 confirmed that between September 28 and October 4, Strategy spent $28.7 million to purchase 334 Bitcoins, bringing its total holdings to 848,000 coins; over the same period, it used $176.3 million to repurchase 1.77 million shares of STRC (STRC.US) preferred stock. As of the end of September, the funds Strategy deployed to repurchase its preferred stock exceeded its weekly Bitcoin purchase budget by more than six times.
Independent analyst Shanaka Anslem Perera noted in a Saturday interpretation that Strategy raised $5.41 billion in the third quarter through new common stock issuance, but only 9.5% was used directly to buy Bitcoin, increasing its end-of-period holdings by 1,666 coins compared with the end of June.
The remaining funds were used to build a U.S. dollar reserve, hold cash, pay dividends and repurchase preferred stock.
Perera emphasized that debt and preferred stock have priority claims over common stock, and that the amount of Bitcoin per share is not the only metric, as cash reserves are equally critical to shareholder equity.
In an interview with Cointelegraph on Sunday, Perera pointed out that raising billions of dollars in capital was not intended for immediate Bitcoin purchases, but rather to bolster cash reserves and protect the interests of preferred shareholders.
Perera added that the retained cash can be used for future purchases, while a strengthened balance sheet can also benefit shareholders.