Strategy Buys 811 Bitcoin For $65.5 Million, Funded By Common Stock Sales
The company also spent $208.2 million of cash last week to buy back its STRC preferred shares.
Strategy, which holds bitcoin as its main treasury asset and sells AI-enabled analytics software, bought 811 bitcoin for $65.5 million between October 26 and November 1, an 8-K filed Monday showed. It separately spent $208.2 million of cash repurchasing 2,092,035 shares of its STRC preferred stock.
Bitcoin bought at $80,846 each
The 811 coins cost an average of $80,846 each, inclusive of fees and expenses. They lifted Strategy's holdings to 849,327 bitcoin, bought for an aggregate $64.08 billion, or an average of $75,451.
The purchases were paid for with sales of common stock. Strategy sold 1,178,552 MSTR shares for net proceeds of $164.0 million, with $65.5 million going to bitcoin and $98.5 million allocated to USD Cash, the cash the company keeps for broader treasury uses. About $18.62 billion of common stock remains available under its at-the-market program, which lets it sell shares gradually into the market.
A $208.2 million preferred buyback
STRC, the variable-rate preferred, was the only security repurchased. The $208.2 million came from USD Cash, and $748.6 million remains under the preferred repurchase program. The MSTR buyback program has $1.0 billion available, and no common shares were repurchased.
Strategy also drew $43.4 million from its USD Reserve, which is meant to cover preferred dividends and debt interest, to pay preferred dividends. As of November 1, the reserve stood at $4.79 billion and USD Cash at $132.7 million.
CFO exit and index decision loom
The filing follows a third-quarter report in which Strategy booked a $20.91 billion bitcoin gain. CFO Andrew Kang resigned alongside those results, and his departure takes effect November 5.
A report said MSCI is due to announce on November 11 which companies leave its indexes, and earlier simulations suggested Strategy could be among them.
MSCI's exclusion list is due November 11, six days after Kang's exit takes effect.
Sources
- 8-K Filing — Strategy Inc (MSTR) — SEC EDGAR
- Why Is Strategy Stock Falling Nearly 5% Today? — Yahoo Finance
- MicroStrategy Posts Record $21B Operating Income on Bitcoin Gain, but BTC-Per-Share Falls — Yahoo Finance
- 'We found room for even more orange': Michael Saylor's Strategy scoops up another 811 bitcoin for $65.5 million — theblock.co
- Saylor Is Hinting at Another Bitcoin Buy Before MSCI Rules on Strategy. What Happens to BTC if Strategy Has to Sell Instead? — Yahoo Finance
- Strategy CFO Andrew Kang resigns as company reports record quarter — CoinDesk
