Strategy Stock Sale Funds STRC Buyback More Than Bitcoin

Strategy raised $283.8 million by selling common stock last week, and most of it did not go into bitcoin. The Strategy stock sale covered 2,051,348 MSTR shares between November 2 and November 8. The company's 8-K of November 9 says $188.3 million of the proceeds went to buy back its STRC preferred stock.

Bitcoin got $81.9 million. The remaining $13.6 million went to USD Cash. Those three amounts add up to the full $283.8 million. By our division, that is 66% for the STRC repurchase, 29% for bitcoin and 5% for cash.

Where The Stock Sale Money Went

The Strategy stock sale was routed through its at-the-market program, and the net figures are after sales commission. The filing explains the split in a footnote under the at-the-market table. It says $81.9 million in net proceeds from MSTR sales funded bitcoin purchases. It says $188.3 million funded repurchases of STRC stock, and the last $13.6 million was allocated to cash.

The buyback itself bought 1,887,464 STRC shares for $188.3 million. That works out to about $99.77 a share by our arithmetic. STRC traded near $99.79 on Yahoo Finance on November 9, just under its $100 stated value.

Put another way, the Strategy stock sale put about 2.05 million MSTR shares on the market in a single week. Strategy sold no preferred stock under its programs during the week. The four preferred lines in the table all show dashes. Only the common stock line has a number, and it shows $283.8 million of net proceeds on 2,051,348 shares.

The Bitcoin Purchase Sits Above Today's Price

Strategy bought 1,036 BTC for $81.9 million, an average of $79,012. Its total stands at 850,364 BTC, bought for $64.16 billion, an average of $75,456. Coinbase's spot price for bitcoin was about $74,340 on November 9.

That puts the week's coins about 6% above the market and the whole stack about 1.5% above it. Those are our comparisons of two published prices, and the spot price changes by the minute.

On the funding side, net proceeds from the common stock work out to about $138.35 a share, by our division. MSTR traded near $123 on Yahoo Finance on November 9.

The ATM and bitcoin tables from the 8-K, with the footnote splitting the proceeds. Source: SEC filing, Strategy Form 8-K of November 9.

Reserves And What Is Left To Spend

The filing also reports the dollar reserve that backs dividends on the preferred stock. Strategy used $21.1 million of it last week to pay those dividends. On November 8 the reserve stood at $4.77 billion and USD Cash at $146.2 million.

Room remains in every program. The common stock program has $18,337.3 million still available. STRC has $17,510.8 million of capacity, and $560.3 million of the preferred repurchase authority is unspent. The common stock buyback authority is $1.0 billion and was not used.

The October STRC repurchase was paid from cash, as we reported in our piece on the Strategy STRC buyback and its $3.0B authority. This week's filing shows the common stock sale doing that job instead. Share counts and prices here are from the filing and public quotes on November 9. This is a news report, not investment advice.