TLDR
- Strategy bought 811 BTC for $65.5 million between Oct. 26 and Nov. 1
- Holdings now total 849,327 BTC at an average cost of $75,451
- MSTR closed Friday at $130.51 and rose to $133 in premarket
- Q3 net income hit $19.5 billion, driven by bitcoin gains
- CFO Andrew Kang will step down on Nov. 5
Strategy (MSTR) stock closed Friday at $130.51, down 9.6% for the week. It rose to $133 in Monday premarket trading, a gain of about 2%.
The company bought another 811 bitcoin between Oct. 26 and Nov. 1. It paid about $65.5 million, or $80,846 per coin, according to an 8-K filing on Monday.
That ends a one-week pause in buying. Earlier in October, Strategy bought 267 BTC for $22.1 million.
Total holdings now stand at 849,327 BTC, worth about $65.9 billion. Strategy paid about $64.1 billion, or an average of $75,451 per coin.
The stack is more than 4% of bitcoinās supply cap. Michael Saylor teased the buy on Sunday with the line, āWe found room for even more orange.ā
How Strategy Paid for the Bitcoin
Strategy funded the buy with at-the-market sales of its Class A common stock. The sales raised about $164 million.
Of that, $65.5 million went to bitcoin and $98.5 million went to its USD cash account. About $18.62 billion of stock remains available under the program.
Strategy also bought back nearly 2.1 million STRC preferred stock for $208.2 million. It paid for the buyback with its USD cash.
The company used $43.4 million from its USD Reserve for preferred dividends. As of Nov. 1, the reserve stood at $4.79 billion, and USD cash was $132.7 million.
Strategy says its dollar assets can cover dividend and interest payments for about 3.3 years. That is a decent cushion.
Q3 Results and Leadership Change
Strategy reported $19.5 billion in third-quarter net income on Thursday. That compares with $2.79 billion a year earlier, helped by a $20.9 billion gain on its bitcoin.
Software revenue fell 3% to $125.4 million. The company also reported a 3.7% negative bitcoin yield year to date.
Saylor said the company is at āthe beginning of the next bitcoin bull market.ā He added that bitcoin trades 21% above its 200-week moving average.
CFO Andrew Kang will step down on Nov. 5. COO Reza Virasteh takes over the role in January.
Holders of STRC, STRF, STRK and STRD preferred stock approved daily dividend accrual last week. The change passed with 99.3% of votes cast.
Analysts at StoneX and TD Cowen say Strategy is better placed to buy more bitcoin. They cite steadier preferred financing and improved liquidity.
Strategy is the largest of 199 public companies holding bitcoin. Metaplanet, Twenty One, Strive and MARA follow with 44,000, 43,514, 43,000 and 35,577 BTC.
Bitcoin fell 3.6% last week during a record $6.3 billion Binance hack. Saylor has said it could climb back above $100,000.
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