Strategy Inc. directed most of its latest share-sale proceeds to preferred-stock repurchases, a program it says may reduce dividend obligations, while continuing to buy Bitcoin (BTC).
The company raised $283.8 million in net proceeds by selling 2,051,348 Class A common shares during Nov. 2-8, according to a filing dated Nov. 9. It allocated $188.3 million to repurchase 1,887,464 STRC preferred shares, $81.9 million to acquire 1,036 BTC and $13.6 million to USD Cash.
The reported average cost of the new Bitcoin, with fees and expenses included, was $79,012 per BTC. Strategy listed 850,364 BTC in its holdings as of Nov. 8, with a total acquisition cost of $64.16 billion. The company reported an average acquisition cost of $75,456 per BTC across those holdings.
Strategy also bought Bitcoin and repurchased STRC in the preceding week, but drew on a different source of funds for the preferred shares. It spent $208.2 million from USD Cash on STRC, while its return to Bitcoin buying added 811 BTC for $65.5 million. Common-share sale proceeds financed the latest STRC repurchases.
The two consecutive weeks of Bitcoin acquisitions followed a period from Oct. 19-25 in which Strategy reported no Bitcoin transactions or common-share sales. During that earlier period, it spent $204.9 million repurchasing STRC. Across the three periods, the company continued buying back preferred stock even when its Bitcoin purchases paused.
Strategy established the repurchase program in June to help keep STRC near its $100 stated amount over time. It said buying preferred shares at significant discounts may reduce expected dividend payments, though it has not quantified any saving from the Nov. 2-8 buyback.
During the latest period, Strategy paid $21.1 million in preferred dividends from its separate USD Reserve, which supports those payments and interest on debt. The reserve stood at $4.77 billion as of Nov. 8, while the company's USD Cash balance was $146.2 million.
