Strategy added 334 BTC worth approximately $28.7 million and repurchased $176 million in STRC, according to its latest disclosure. The purchases came as Peter Schiff warned that Bitcoin could reverse lower if technology stocks begin to retreat. The opposing signals raise a broader question: while Strategy continues to accumulate Bitcoin, can its current financing structure support larger purchases if appetite for risk weakens?
The company’s Bitcoin holdings have now reached 848,000 BTC, equivalent to slightly more than 4% of Bitcoin’s total supply. Bitcoin was trading near $86,000, up more than 4% over the past seven days and over 8% during the past 30 days. Despite that rebound, the cryptocurrency remained about 30% lower than it was a year ago.
Strategy reported $4.88 billion in its USD Reserve, which is set aside for preferred-stock dividends and interest payments on debt. It also held $833.4 million in USD Cash for general corporate needs, including potential Bitcoin purchases. Although both provide liquidity, they have different roles. The reserve is committed to specific financial obligations, while the cash balance is the more flexible source for discretionary spending.
The latest filing showed that Strategy generated $15.7 million in net proceeds from MSTR common-stock sales and used all of that money to buy Bitcoin. The company also withdrew $13 million from USD Cash for the transaction. The 334 BTC purchase was completed at an average price of $85,838.80 per Bitcoin.
Strategy’s latest purchase was notably smaller than its late-September acquisition, when it bought 1,665 BTC for approximately $142.8 million. While the latest transaction confirms that the company has not stopped accumulating Bitcoin, the scale of its buying has decreased.
Schiff’s criticism centers on STRC’s ability to generate new funding rather than Strategy’s ability to continue making Bitcoin purchases. STRC had recovered to roughly $99.40 after falling to around $75 during the summer. The preferred stock had a reported notional value of $8.93 billion, along with a 12% variable dividend and a 12.07% effective yield.
According to Schiff, STRC’s recovery was helped by Strategy’s buybacks and Bitcoin’s move above $80,000. However, he argued that the rebound has not yet restored Strategy’s ability to raise fresh capital through new STRC issuance.
Strategy repurchased roughly $176.3 million of STRC during the latest reporting period. Most of the funding came from its USD Cash balance, with the remainder generated from interest earned on cash and short-term investments.
Bitcoin’s Move Above $80,000
Schiff linked Bitcoin’s return above $80,000 to stronger market confidence and possible short covering. Although he considers the level important to the recent recovery, the available data does not confirm that $80,000 has become a technical support level.
Bitcoin has since climbed toward $86,000, with gains of more than 4% over the week and over 8% for the month. Those figures show that the recovery has extended well beyond the $80,000 threshold. However, Bitcoin’s roughly 30% year-over-year decline highlights that the recent strength is still a rebound from lower prices rather than a return to levels seen a year ago.
Schiff also pointed to falling bond prices, weak inflation and employment indicators, and oil trading near $91 a barrel after the G7 pledged to release 100 million barrels from strategic reserves. These factors form part of Schiff’s broader market-risk argument, but they do not prove that a technology-stock sell-off is already developing or that Bitcoin would necessarily decline if such a correction takes place.
