Strategy Adds 811 Bitcoin, Buys Back $208M of Stretch Preferred While Selling $164M in Stock
MSTR sits 61% above its 52-week low of $81.81.
Summary
Strategy bought 811 bitcoin for $65.5M in the week ended Nov. 1, an average of $80,846 per coin, lifting total holdings to 849,327 BTC acquired for $64.1B (average $75,451). It funded that plus a $208.2M purchase of 2.09M Stretch preferred shares by selling 1.18M common shares for roughly $164M, with the remainder going into cash. The company also used $43.4M of its USD reserve for preferred dividends, leaving the reserve at $4.79B. The buyback of Stretch preferred at scale continues the pattern seen since August, when Strategy repurchased STRC and sold bitcoin to do it — now it is selling common stock instead. The common equity raise is modest against a $55B market cap, but the steady drip of ATM sales keeps pressure on the share count while the preferred buybacks support that security's price. Bitcoin at $80,846 is above the $75,451 average cost, so the treasury remains in unrealized gain territory.
At the time of this announcement, MSTR was trading at $131.60 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $55.1B. The 52-week trading range was $81.81 to $276.32. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.