CryptoSlate
Strategy bought 811 BTC for approximately $66 million in the week ended Nov. 1, while spending a record $208 million on STRC preferred-stock buybacks. Deployable USD Cash fell 45.3%, from $242 million to $133 million, despite $164 million in net proceeds from MSTR common-stock sales.
Why it matters
Only about $66 million of the stock-sale proceeds went toward Bitcoin purchases. The remaining $99 million was allocated to deployable cash, which still declined by $110 million as preferred-stock repurchases outpaced new funding. Strategy spent more than three times as much buying back STRC as it did acquiring BTC.
The $133 million balance is available for broader treasury uses. It is separate from Strategy’s $4.79 billion USD Reserve, designated for preferred-stock dividends and debt interest. That reserve fell from $4.83 billion after $43 million in dividend payments during the reporting week.
Market impact
The purchase brought Strategy’s holdings to 849,327 BTC, acquired for an aggregate $64 billion at an average cost of $75,451 per coin. The latest acquisition was the company’s largest since it disclosed buying 1,665 BTC on Sept. 28, following three smaller weekly purchases in October.
Strategy repurchased about 2.09 million STRC shares at an average of $99.52 each, close to the security’s $100 stated value. STRC carries a 12% annualized variable-rate dividend. Since launching the program in July, Strategy has spent more than $2 billion on preferred-stock buybacks and has about $749 million of authorization remaining under its expanded $3 billion digital credit securities program.
Frequently asked questions
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How much Bitcoin did Strategy buy in the week ended Nov. 1?
Strategy bought 811 BTC for approximately $66 million, bringing its holdings to 849,327 BTC.
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Why did Strategy’s deployable cash fall despite stock-sale proceeds?
The company allocated $99 million of its $164 million in net common-stock proceeds to deployable cash, but spent $208 million on STRC buybacks.
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How does Strategy’s USD Reserve differ from deployable cash?
Deployable cash is available for broader treasury uses. The separate $4.79 billion USD Reserve is designated for preferred-stock dividends and debt interest.
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What are the terms of the STRC shares Strategy repurchased?
STRC is a variable-rate perpetual preferred security with a 12% annualized dividend rate. Strategy paid an average of $99.52 per share, near its $100 stated value.
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How much authorization remains for Strategy’s preferred-stock buybacks?
Strategy has about $749 million remaining under its expanded $3 billion digital credit securities repurchase program.
Benjamin Cowen
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