Company Strategy acquired 1,036 BTC for $81.9 million and repurchased STRC preferred stock worth $188.3 million, bringing its balance to 850,364 BTC, while the cryptocurrency trades below the company’s average purchase price.
According to Strategy’s report dated November 9, the company acquired the bitcoins between November 2 and 8 at an average price of $79,012 per coin, including commissions and expenses. The total cost of the acquired bitcoins currently stands at $64.16 billion, at an average purchase price of $75,456.
The announcement followed a hint made over the weekend by Executive Chairman Michael Saylor, who shortly before the scheduled weekly release presented the company’s now-familiar bitcoin accumulation chart.
Michael Saylor confirmed the BTC purchase
On Sunday, November 8, Saylor posted on X with the caption “Connecting the dots,” along with a chart tracking bitcoin purchases by Strategy.
The post heightened expectations of another acquisition after Strategy bought 811 BTC for $65.5 million in the previous reporting week.
At that point, Strategy held 849,327 BTC, while bitcoin traded around $75,900. During that period, the company repurchased $208.2 million worth of STRC preferred stock.
On Monday, Saylor confirmed the latest purchases, providing investors with details on the company’s bitcoin accumulation and preferred stock transactions.
“Company Strategy acquired 1,036 BTC and repurchased $188 million worth of STRC shares,” wrote Strategy Executive Chairman Michael Saylor on X.
After the announcement, the price of bitcoin was around $74,800, leaving Strategy’s total assets slightly below its average purchase cost. At that price, the value of the company’s bitcoin holdings was approximately $63.6 billion, whereas $64.16 billion was spent acquiring the coins.
The latest purchase of 1,036 BTC turned out to be larger than the previous week’s acquisition of 811 BTC, but still smaller than some of Strategy’s purchases earlier in the year.
The company uses proceeds from MSTR share sales to fund BTC and STRC purchases
Company Strategy financed both transactions through its at-the-market offering program for common stock, selling 2,051,348 MSTR shares and receiving net proceeds of approximately $283.8 million.
Of this amount, $81.9 million was allocated to buying bitcoins, and $188.3 million to repurchasing STRC preferred stock. The remaining $13.6 million was added to the company’s general cash balance.
The financing scheme differed from the one used the previous week, when Strategy used proceeds from selling common stock to buy bitcoins and available cash to repurchase STRC.
According to the documents provided, Strategy repurchased 1,887,464 STRC shares during the latest reporting period. It did not sell new preferred shares and did not repurchase shares of other classes of preferred stock.
STRC, also known as Stretch, pays variable dividends and targets a share price around the stated $100. Under this structure, the company periodically adjusts the dividend amount.
Repurchasing preferred shares reduces the number of shares entitled to future dividends, although Strategy did not disclose the exact amount of annual savings from the latest transaction.
As of November 8, $560.3 million remained available under the preferred stock repurchase program. A separate $1 billion common stock repurchase program remained unused during the week.
