CryptoSlate
Strategy bought 1,036 Bitcoin for $81.9 million during November 2–8, funding the purchase with proceeds from MSTR common-stock sales. The company raised $283.8 million from those sales and directed $188.3 million to repurchasing its variable-rate STRC preferred shares. It reported no STRC sales through its at-the-market program, even though the shares touched $100 during the week.
Why it matters
STRC hit an intraday high of $100 on November 4 but closed at an unadjusted $99.98. Strategy had said in July that it would not issue STRC below $100, with a long-term objective of sustained trading near that level. The policy was a statement of intent and could change.
The week's allocation shows that crossing the price threshold in market trading did not translate into reported STRC issuance. Strategy sold 2,051,348 MSTR shares, including shares sold but not yet settled as of November 6, and repurchased 1,887,464 STRC shares.
Market impact
The buybacks absorbed 66.3% of common-stock proceeds, versus 28.9% for Bitcoin and 4.8%, or $13.6 million, for USD Cash. Common issuance expands the share base, while the repurchases reduce preferred claims. Future dividend savings depend on rates and declarations.
Strategy paid an average of $79,012 per Bitcoin, including fees and expenses. At November 8, USD Cash stood at $146.2 million, separate from a $4.77 billion reserve for dividends and interest. The company used $21.1 million of that reserve to pay preferred dividends during the week.
Frequently asked questions
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How did Strategy finance its Bitcoin purchases during November 2–8?
Strategy used proceeds from MSTR common-stock sales to buy 1,036 Bitcoin for $81.9 million.
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How much of the common-stock proceeds went to STRC buybacks?
Strategy allocated $188.3 million, or 66.3% of the $283.8 million in proceeds, to repurchasing STRC shares.
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Did STRC trading at $100 result in new preferred-share sales?
No STRC sales through Strategy's at-the-market program were reported for November 2–8. STRC touched $100 intraday on November 4.
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How did the transactions change Strategy's share structure?
MSTR issuance expands the common-share base, while STRC repurchases reduce preferred claims. Future dividend savings depend on rates and declarations.
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What was Strategy's average purchase price for Bitcoin?
Strategy paid an average of $79,012 per Bitcoin during the week, including fees and expenses.
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