Strategy Inc. returned to buying bitcoin last week while committing substantially more cash to repurchasing its STRC preferred shares. In a Form 8-K dated November 2, the U.S.-listed company disclosed that it acquired 811 bitcoin for approximately $65.5 million between October 26 and November 1. The average purchase price was $80,846 per bitcoin, including fees and expenses. Over the same period, Strategy spent $208.2 million buying back STRC, making the preferred-share repurchase more than three times the size of its latest bitcoin purchase.

Common-stock sales funded the bitcoin purchase

Strategy sold 1,178,552 shares of its MSTR Class A common stock through its at-the-market program for net proceeds of about $164 million. The filing allocates $65.5 million of those proceeds to the bitcoin purchase and says the remaining $98.5 million was added to USD Cash, a pool management can use for broader capital purposes. Strategy did not report selling STRC, STRF, STRK or STRD preferred shares during the week. The transaction therefore paired new common-equity issuance with both a larger bitcoin position and additional cash liquidity. Common-stock issuance also increases the share count, so the capital raised and the resulting dilution are both relevant when evaluating the transaction.

Related reporting: Strategy sells $246M of MSTR to fund bitcoin and STRC buybacks

The STRC repurchase was the larger capital move

The company repurchased 2,092,035 STRC shares for $208.2 million from its USD Cash balance. STRC is Strategy's variable-rate perpetual preferred stock, designed to trade around a $100 reference level while paying cash dividends. Buying shares below or around that level can reduce the amount outstanding and the associated future dividend burden, although the economic benefit depends on the repurchase price, financing costs and subsequent market conditions. Approximately $748.6 million of authorization remained under the preferred-stock repurchase program after the reported transactions. The filing does not treat the buyback as a bitcoin purchase, and the two uses of capital should not be combined when measuring additions to the treasury.

Bitcoin holdings rise to 849,327 coins

After the purchase, Strategy reported holdings of 849,327 bitcoin acquired for an aggregate $64.08 billion, or an average of $75,451 per coin including fees and expenses. The latest weekly purchase price was above that cumulative average. The company resumed buying after reporting no bitcoin acquisition in the preceding week. The disclosed cost figures are accounting records, not a statement of realized profit or loss, because Strategy continues to hold the coins. Its filing also shows how the treasury model now operates through several instruments: common-stock issuance can finance bitcoin purchases, while separate cash pools support preferred dividends, security repurchases and other balance-sheet uses.

Liquidity remains split between two cash pools

Strategy used $43.4 million from its separate U.S. dollar reserve to fund preferred-stock dividends during the same week. As of November 1, it reported a USD Reserve balance of $4.79 billion and USD Cash of $132.7 million. The reserve is intended to support preferred dividends and interest payments, while USD Cash has broader permitted uses. Investors therefore need to distinguish the company's bitcoin holdings, restricted-purpose reserve and flexible cash balance when assessing liquidity. The filing confirms completed transactions, but it does not establish how bitcoin, MSTR or STRC will trade afterward, and the mix of future issuance, purchases and buybacks can change with market conditions.

Sources

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