STRC nears $100 as Strategy discloses $208M share buyback
STRC approached Strategy’s target price while a new filing detailed share repurchases, Bitcoin additions and the company’s cash allocations.
Strategy spent $208.2 million repurchasing STRC shares between October 26 and November 1, more than three times its Bitcoin spending during that period. Its November 2 filing also disclosed the purchase of 811 BTC for $65.5 million.
STRC subsequently traded just nine cents below the company’s $100 target in the chart seen at the time of this writing. The latest purchases extend Strategy’s effort to support its dividend-paying shares while continuing to add Bitcoin.
STRC approaches Strategy’s target
STRC traded at $99.91 at the time of this writing, up 0.79% from where it closed before. It reached $99.94 during the session.
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.
