Strategy recently purchased 811 BTC for a total of $65.5 million, as disclosed by the company on Monday, marking a return to its Bitcoin acquisitions after a pause of one week.
The Bitcoin treasury firm acquired these coins at an average price of $80,846 between October 26 and November 1, utilizing funds generated from selling 1,178,552 shares of MSTR stock, which amounted to $164 million in net returns, as reported in an SEC filing. Of this sum, $65.5 million was allocated for Bitcoin acquisitions, and $98.5 million was directed to its USD Cash account.
Strategy’s total Bitcoin holdings now stand at 849,327 BTC, amassed at a cumulative cost of $64.08 billion, averaging around $75,451 per coin.
Additionally, the company repurchased 2,092,035 shares of STRC, its variable-rate preferred stock, at a cost of $208.2 million, entirely funded from USD Cash. This is an increase from $204.9 million from the previous week, when Strategy halted Bitcoin purchases for the first time since mid-September. The week prior, it had purchased 267 BTC for $22.1 million.
The USD Cash balance, which Strategy reserves for key operations including Bitcoin acquisitions, decreased to $132.7 million, down from $242.4 million a week ago. Meanwhile, the USD Reserve, designated for preferred dividends and debt interest, was recorded at $4.79 billion after distributing $43.4 million in dividends. Approximately $748.6 million remains allocated for repurchasing preferred stock.
Strategy indicated that its total USD assets amount to $4.9 billion, with a “USD Duration” of 3.3 years, reflecting how long these assets can sustain dividends and interest, as shared via Twitter.
STRC’s daily dividends commence
These acquisitions coincide with STRC shifting to a new dividend framework. Shareholders approved the implementation of daily dividends on Strategy’s four preferred stock classes last week, with STRC’s first daily record date set for November 1.
Mizuho Financial Group retained its Outperform rating and a $165 price target for MSTR after Strategy’s third-quarter earnings report, noting improvements in its balance sheet, with net leverage reduced from 8.4% to 2.4%, as highlighted in a summary of the report. However, analyst Dan Dolev also pointed out concerns over dilution, indicating that Bitcoin per share has declined by 3.7% this year.
Furthermore, Strategy might face removal from MSCI’s equity indices following a rule finalized by the index provider in October, which classifies companies heavily reliant on a single asset as ineligible. MSCI will announce the list of impacted companies on November 11.