Strategy Buys 811 BTC for $65.5M After a Week Without Purchases
Strategy disclosed an 811 BTC purchase worth $65.5M, lifting holdings to 849,327 BTC, while funding $208.2M in STRC buybacks and building cash.
Strategy bought 811 BTC for about $65.5 million, ending a week in which it made no bitcoin purchases. According to Wu Blockchain, which cited an SEC Form 8-K filed on November 2, the buying took place between October 26 and November 1 at an average price of $80,846 per coin. The Block and BeInCrypto also reported 811 BTC, while the Unfolded post cited 810 BTC.
The disclosure followed a hint from Michael Saylor on November 1. He posted a chart of the company's purchase history with the words "We found room for even more orange." Bitcoin.com News noted the chart matched the company's holdings as of October 25, so it signaled a possible purchase rather than confirming one.
Holdings and funding
Wu Blockchain reported that Strategy held 849,327 BTC as of November 1. The company paid about $64.08 billion for them, an average of $75,451 per coin.
The filing shows the purchase was funded by stock sales. Strategy sold about 1.18 million MSTR common shares for $164 million in net proceeds, according to Wu Blockchain. It used $65.5 million to buy bitcoin and put $98.5 million into USD cash.
The company also repurchased about 2.09 million shares of its STRC preferred stock for $208.2 million. Decrypt reported that this cut the USD cash balance to $132.7 million. Bitcoin.com News had reported a cash balance of $242.4 million as of October 25, alongside a separate $4.83 billion reserve for preferred dividends and debt interest.
Dilution and the earnings backdrop
BeInCrypto said the latest round shows a tension for shareholders. Strategy issued new shares faster than it added bitcoin, so the bitcoin per diluted MSTR share fell by about 0.17%, according to the outlet. Its holdings grew, but each share represented slightly less bitcoin.
That fits a wider pattern in the company's third-quarter results, as described by Bitcoin.com News. BTC Yield, which tracks bitcoin per assumed diluted share, was negative 3.7% for the year to date. The company also reported record operating income of $20.91 billion, driven by digital asset gains, while revenue fell 3% to $125.4 million. The Block cited $19.5 billion in third-quarter net income.
On the October 29 earnings call, Saylor said bitcoin was at the "beginning of the next bitcoin bull market." He pointed to growing acceptance among banks, renewed institutional demand and bitcoin's rising dominance among digital assets.
What traders may watch
Traders may want to watch how Strategy pays for future purchases. This week it raised money by selling MSTR shares, and it spent more on STRC buybacks than it put into bitcoin. Next week's filing should show whether it keeps buying and how it funds the purchases.
Two other numbers are worth tracking: the USD cash balance and the BTC Yield figure. BeInCrypto also noted that rival Strive added 124 BTC on November 2, bringing its holdings to 43,124 BTC. Bitcoin.com News said Saylor's earlier chart hint on October 11 was followed by a disclosed 250 BTC purchase. The latest hint followed the same pattern.
Sources
- Even More Orange: Saylor Sees Bitcoin Bull Run, Hints at More Buying Bitcoin.com News
- STRATEGY BOUGHT 810 BTC INCREASING HOLDINGS TO 849,327 BTC unfolded
- ‘We found room for even more orange’: Michael Saylor’s Strategy scoops up another 811 bitcoin for $65.5 million The Block
- Strategy buys 811 BTC for $65.5M, holds 849,327 BTC total Wu Blockchain
- Strategy Resumes Bitcoin Buys With $66M Purchase Decrypt
- MicroStrategy and Strive Buy More Bitcoin, but Shareholders Could Feel the Pain BeInCrypto
Written with AI assistance from the sources above and checked against them. Not investment advice.