Strategy purchased another 334 BTC for roughly $28.7 million and repurchased about $176 million of STRC, according to its latest disclosure. The moves came as Peter Schiff warned that Bitcoin could face a reversal if technology stocks experience a pullback. The contrasting developments raise questions about whether Strategy’s existing funding structure can support larger Bitcoin purchases if risk appetite across markets deteriorates.
Strategy’s Bitcoin holdings have risen to 848,000 BTC, representing just over 4% of the cryptocurrency’s total supply. Bitcoin was trading around $86,000, having gained more than 4% over the past week and over 8% during the last 30 days. Despite the recent recovery, Bitcoin remained roughly 30% below its level from a year earlier.
The company’s latest figures show $4.88 billion in USD Reserve, designated for preferred dividends and interest payments on debt, along with $833.4 million in USD Cash available for general corporate purposes, including Bitcoin acquisitions. While both balances offer liquidity, they are not equivalent. The reserve is intended for specific obligations, whereas the cash balance can be used more directly for discretionary purchases.
Strategy’s filing showed $15.7 million in net proceeds from MSTR common-stock sales, all of which went toward Bitcoin purchases. The company also used $13 million from its USD Cash balance to complete the transaction. The 334 BTC were acquired at an average price of $85,838.80.
The purchase was considerably smaller than Strategy’s late-September acquisition of 1,665 BTC for approximately $142.8 million. The latest transaction demonstrates that Strategy remains active in the Bitcoin market, although the size of its purchases has declined.
Schiff’s concerns are focused on STRC’s ability to generate additional capital rather than Strategy’s ability to purchase more Bitcoin. STRC had recovered to around $99.40 after dropping to approximately $75 during the summer. Its reported notional value stood at $8.93 billion, with a 12% variable dividend and an effective yield of 12.07%.
Schiff said STRC’s recovery was partly supported by Strategy’s buybacks and Bitcoin’s move above $80,000. However, he argued that the rebound has not restored Strategy’s ability to raise fresh funds through new STRC issuance.
During the latest reporting period, Strategy repurchased approximately $176.3 million in STRC. Most of the money came from its USD Cash balance, while the remainder was funded by interest earned on cash and short-term investments.
Bitcoin’s Recovery Above $80,000
Schiff attributed Bitcoin’s move back above $80,000 to improved investor confidence and potential short covering. While the price level is significant in his assessment of the recovery, the reported data does not establish $80,000 as a confirmed technical support level.
Bitcoin later moved toward $86,000, extending its gains to more than 4% over seven days and more than 8% over 30 days. Still, the cryptocurrency’s approximately 30% year-over-year decline shows that the recent move represents a recovery from lower prices rather than a return to last year’s levels.
Schiff also pointed to declining bond prices, weaker inflation and employment data, and oil prices near $91 per barrel following a G7 pledge to release 100 million barrels from strategic reserves. Those developments form part of his broader warning about market conditions, but they do not show that a technology-stock correction is already occurring or establish that Bitcoin would necessarily decline if one happens.
