KEY INSIGHTS
- Strategy has invested $65.5 million to buy 811 BTC, totaling 849,327 BTC.
- Strategy repurchased $208.2 million worth of STRC preferred stocks.
- Strategy holds $4.79 billion worth of reserves in USD to pay dividends and interests.
Strategy has purchased 811 BTC for $65.5 million as of the first week of November. The company resumed purchasing after a week’s break and reported the purchase on Monday, November 2nd. Strategy has paid an average of $80,846 per coin. STRATEGY has accumulated 849,327 BTC with an average cost of $75,451 per BTC for approximately $64.08 billion.
The purchase was made in conjunction with another major repurchase of STRC preferred stocks and changes in the firm’s cash balances in dollars. Strategy funded its purchase of the bitcoins through selling off MSTR common stock, and part of the money was placed in its USD cash balance. Strategy also has a dedicated balance for preferred dividends and debt interest payments.
Strategy buys more bitcoins after taking a break.
The last purchase from Strategy was made following a week when it did not buy any bitcoins but instead engaged in buying back STRC stocks. Between October 26 and November 1, Strategy bought 811 BTC worth $65.5 million.
Source: Wu Blockchain
The company sold 1,178,552 MSTR shares for $164 million in net proceeds, according to a filing by the company with the U.S. Securities and Exchange Commission. It allocated $65.5 million for bitcoin and $98.5 million to its USD Cash account.
The purchase increased Strategy’s position to 849,327 BTC, a record high. According to the company, the cost of buying the bitcoin was approximately $64.08 billion, with the average purchase price being $75,451 per coin.
STRC buybacks continue as cash balances change
Strategy also repurchased 2,092,035 shares of STRC, its variable-rate preferred stock, for $208.2 million. The company funded the transaction entirely from USD cash. The amount was higher than the $204.9 million spent on STRC repurchases in the previous week, when bitcoin buying was paused.
USD cash declined to $132.7 million from $242.4 million a week earlier. Separately, Strategy’s USD Reserve, which is intended to cover preferred dividends and interest on debt, stood at $4.79 billion after the company paid $43.4 million in dividends.
Approximately $748.6 million remained available under Strategy’s program for preferred-stock repurchases. The company reported combined USD assets of $4.9 billion and a USD duration of 3.3 years, a measure of how long those assets could cover dividend and interest obligations.
The company’s four preferred stocks are also moving to daily dividend payments after shareholders approved the change last week. STRC’s first daily record date was November 1. Its share price had recovered to less than 1% below its $100 par value, according to the supplied reporting.
Analyst views and MSCI reviews add to company developments.
Mizuho Financial Group maintained its Outperform rating and $165 price target on MSTR after Strategy’s third-quarter earnings call. A summary of the firm’s note cited a reduction in net leverage to 2.4%, down from 8.4%. It also flagged dilution concerns, noting that bitcoin per share had fallen 3.7% this year.
Strategy also faces a possible removal from MSCI equity indexes. The index provider finalized a rule in October that treats companies dominated by a single asset as ineligible. MSCI is expected to publish the list of affected companies on November 11; the supplied information does not confirm whether Strategy will be included.
The latest Bitcoin disclosure follows Strategy’s report of $19.5 billion in third-quarter net income. The company has also announced that Chief Financial Officer Andrew Kang will depart on November 5. Kang has held other senior finance roles, including executive vice president, principal financial officer, and principal accounting officer.
Strategy’s latest purchase raises its reported bitcoin holdings to 849,327 BTC as it continues preferred-stock repurchases and maintains a separate dollar reserve for dividend and interest payments.
FAQs
How much bitcoin did Strategy buy?
It acquired 811 BTC for $65.5 million between October 26 and November 1, at an average price of $80,846 per coin.
How much bitcoin does Strategy hold?
Strategy reported 849,327 BTC, acquired for approximately $64.08 billion at an average price of about $75,451 per bitcoin.
How did Strategy fund the purchase?
It sold 1,178,552 MSTR shares for $164 million in net proceeds. Of that amount, $65.5 million funded bitcoin purchases and $98.5 million went to USD Cash.
