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Strategy is back to buying bitcoin with 811 BTC, but spends three times as much buying back STRC shares
Summary
Michael Saylor's Strategy bought 811 bitcoin for about $65.5 million between Oct. 26 and Nov. 1, at an average of $80,846 per coin, according to an SEC filing cited by Decrypt and Cointelegraph; The Block and Bitcoin Magazine also reported the purchase.
The buy resumes Strategy's bitcoin purchases after a week in which it bought none, and the company now holds 849,327 BTC acquired for a total of about $64.08 billion, Decrypt reported.
Strategy also spent $208.2 million buying back its STRC preferred stock, more than three times what it spent on bitcoin, funding the week by selling about 1.18 million MSTR shares for $164 million in net proceeds, Cointelegraph reported.
Its USD Cash balance fell to $132.7 million from $242.4 million a week earlier, while its separate USD Reserve for dividends and interest stood at $4.79 billion, according to Decrypt and Cointelegraph.
Bitcoin Magazine reported that fellow treasury firm Strive added 124 BTC over the same week.
Updates
- Update, : Update (Nov. 2): The Block reported Strive's 124 BTC buy cost about $10 million and moves it closer to becoming the second-largest public bitcoin holder.
- Update, : Update (Nov. 2, late afternoon): Decrypt reported that Strive mostly used existing cash for its 124 BTC buy and, for the first time, raised money by selling its new SATS preferred shares on the open market.
Key facts
- Of the $164 million raised from MSTR share sales, $65.5 million went to bitcoin and $98.5 million to USD Cash.
- Strategy bought back 2,092,035 STRC shares for $208.2 million, up from $204.9 million the previous week; about $748.6 million remains under its preferred-stock buyback program.
- Strategy made about $664 million in STRC buybacks from Oct. 1 to Oct. 25, compared with about $72 million in bitcoin purchases over that period.
- STRC traded at $99.22 pre-market Monday, about 0.8% below its $100 target; Strategy's policy is not to issue new STRC below $100.
- The disclosure follows Strategy's report of $19.5 billion in third-quarter net income on Thursday.
- Strategy and Strive together added 935 bitcoin last week.
- MSCI is due to publish on Nov. 11 its list of companies affected by a rule that could remove Strategy from its equity indexes.
- Strive's 124 BTC purchase cost about $10 million and brings it closer to becoming the second-largest public company holder of bitcoin after Strategy.
- Strive's 124 BTC purchase, about $10 million at an average of $80,526 per coin, brings it to 43,124 BTC, fourth among public companies, 390 BTC behind Twenty One Capital and 876 BTC behind Metaplanet, per Bitcoin Treasuries data.
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