Saylor Tips More Orange Coming 🟧; Strategy Booked 334 BTC and a Mountain of Preferred Buybacks in Early October

Strategy chair Michael Saylor hinted at further Bitcoin accumulation over the weekend, posting "There's always room for more orange" on X on Sunday. Any formal disclosure of additional purchases, however, is unlikely to arrive before Tuesday because US federal offices are closed on Monday for the Columbus Day holiday.

The company closed out September with a heavier tilt toward preferred-stock buybacks than toward spot Bitcoin. Between Sept. 28 and Oct. 4, Strategy bought 334 Bitcoin (BTC) for $28.7 million, lifting its holdings to exactly 848,000 BTC, according to an Oct. 5 8-K filing. Over the same period, the firm repurchased roughly 1.77 million shares of its STRC preferred stock for $176.3 million, more than six times the dollar value of its weekly Bitcoin buying.

Independent analyst Shanaka Anslem Perera argued on Saturday that the mix of capital raises, BTC buys and preferred buybacks leaves shareholders with a more nuanced picture than headline accumulation figures suggest. In his monthly Bitcoin and crypto newsletter, Perera wrote that Strategy's SEC filings "allocate 9.5% of the raise directly to bitcoin purchases. Other disclosed uses included a dollar reserve, cash, dividends and preferred-share buybacks." He also noted Strategy raised $5.41 billion from new common shares in the third quarter and ended the period holding 1,666 more BTC than at the end of June.

"The question for investors is what the financing left behind," Perera wrote. "For a shareholder, bitcoin per share is only part of the answer. Cash counts too, while debt and preferred shares have claims ahead of common stock." Speaking to Cointelegraph on Sunday, he added: "During the third quarter Strategy raised billions through share sales, but much supported cash reserves and preferred shareholders. Raising capital does not necessarily mean buying bitcoin. That does not mean they stopped buying BTC. Cash retained can fund later purchases, and strengthening the balance sheet can benefit shareholders."

Investors awaiting confirmation of any new BTC purchases will need to watch for Strategy's next 8-K filing once US markets reopen after the holiday.