After falling to below its resistance in June, the share price bounced well and repeatedly approached $100 in recent weeks.
That level is of especial concern to STRC as Strategy will want to see the share trading near their ‘stated’ price of $100 and will do everything by way of dividend and ‘repurchase’ adjustments to ensure so.
The company announced in its 29 October results announcement that it intends to continue to reward STRC with an annual rate of 12%. Dividends are now to be paid via daily dividends with effect from 1 November.
Where the buyback money came from
According to Strategy’s November 2 filing, it repurchased approximately 2.09 million STRC shares using its general-purpose “USD Cash” balance.
This would also bring down future payment obligations for the company, as these shares paid dividend; the company had $748.6 million preferred-share repurchase authorisation remaining on its books.
Meanwhile, it raised $164 million by selling approximately 1.18 million new MSTR common shares. Of those proceeds, $65.5 million funded Bitcoin purchases, and $98.5 million went into USD Cash.
Bitcoin purchases continue alongside cash commitments
The 811 $BTC purchase brought Strategy’s holdings to 849,327 $BTC. The company paid an average of $80,846 per Bitcoin for the latest additions, including fees and expenses.
From its separate USD Reserve, it also used $43.4 million to pay preferred-stock dividends during the week.
As of November 1, what Strategy held, which supports dividends and debt interest, was $4.79 billion. Its general-purpose USD Cash balance stood at $132.7 million.
Final Summary
- Strategy repurchased $208.2 million of STRC as the shares traded close to its $100 target.
- The company also bought 811 $BTC for $65.5 million, funded through new MSTR share sales.