Strategy Acquires 811 Bitcoin and Repurchases $208 Million in Preferred Shares

Strategy has recently enhanced its Bitcoin treasury by acquiring 811 BTC for $65.5 million, bringing its total holdings to approximately 849,327 BTC, valued at around $66 billion. This purchase was financed through the sale of MSTR stock, which generated $164 million in net proceeds from October 26 to November 1.

Despite a dip in Bitcoin prices, which fell below $77,000 due to market reactions to the recent Binance hack, Strategy's Bitcoin holdings remain profitable, with an average cost basis of $75,446 per BTC and unrealized gains of about $1.5 billion. In addition to its Bitcoin acquisition, Strategy repurchased over 2 million STRC preferred shares for approximately $208 million during the same period.

As of November 1, Strategy's USD Reserve stood at about $4.8 billion, with USD Cash around $133 million. The company has indicated that it still has approximately $749 million available for further preferred stock repurchases and $1 billion for MSTR buybacks.

The recent buyback of preferred shares marks a notable shift in Strategy's capital allocation strategy, as the company has been prioritizing these repurchases over Bitcoin acquisitions. This trend could potentially stabilize the market for STRC shares, making them more appealing to investors.

Latest Developments

• Strategy (formerly MicroStrategy) acquired 811 BTC for $65.5 million, increasing its total Bitcoin holdings to 849,327 BTC.
• Strive purchased an additional 124 BTC, bringing its total holdings to 43,124 BTC.
• Strategy issued approximately 1.18 million new MSTR shares to raise $164 million, which has led to a dilution of Bitcoin exposure per share by approximately 0.17%.
• Strategy repurchased $208 million in STRC preferred stock, significantly more than its Bitcoin acquisition cost, to reduce future dividend obligations.
• Strive's diluted share count remained unchanged, resulting in an increase of Bitcoin per diluted share by approximately 0.29%.
• Strategy's Bitcoin per diluted share has decreased by 3.7% this year as of October 25, 2023.
• Strategy has authorization to sell an additional $18.6 billion worth of MSTR shares, which may lead to further dilution for shareholders.

Latest Developments

• Strategy acquired an additional 811 Bitcoin for approximately $65.5 million, averaging $80,846 per coin, increasing its total holdings to 849,327 BTC.
• Strategy's net income surged to $19.5 billion, up from $2.79 billion a year prior, largely due to a $20.9 billion operating gain linked to rising Bitcoin prices.
• CFO Andrew Kang will step down on November 5, with COO Reza Virasteh set to take over in January.
• Shareholders approved a proposal for four preferred stocks to accrue dividends daily, with 99.3% voting in favor.
• Strive added 124 BTC, bringing its total to 43,124 BTC, while its cash position decreased by $14 million to $490 million.
• On October 29, Binance experienced a significant security breach estimated at $6.3 billion, impacting Bitcoin prices and leading to a 3.6% decline over the week.
• Strategy's stock fell about 9% last week, closing at $130.51, while Strive shares dropped around 20%.