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Strategy Buys $82M in Bitcoin, Buys Back $188M of STRC
Strategy bought 1,036 bitcoin for $81.9 million in the week to 8 November, extending its purchases for a second consecutive week. It also repurchased $188.3 million of its variable-rate preferred shares, while raising funds mainly by selling ordinary shares.
The company paid an average of $79,012 per bitcoin and now holds 850,364, bought for a total of $64.16 billion at an average of about $75,456 each. Sales of 2,051,348 MSTR shares raised $283.8 million net; after the bitcoin purchase and preferred-share buyback, its USD Cash balance rose to $146.2 million. The update comes ahead of MSCI’s decision on whether new rules for companies dominated by a single asset could exclude Strategy from its equity indexes.
In short
- Strategy bought 1,036 bitcoin for $81.9 million.
- It repurchased $188.3 million of preferred shares.
- MSCI’s new rules could affect its index membership.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters could argue that buying bitcoin while repurchasing preferred shares is a deliberate allocation of capital: the company adds to an asset it sees as central to its strategy while reducing outstanding financing obligations. Raising funds through ordinary-share sales also gives it a way to pursue that plan and retain cash, provided investors accept the resulting dilution and exposure to bitcoin’s price swings. They may see the coming MSCI decision as a reason to keep demonstrating the business’s chosen model rather than retreat from it.
The case against
Critics could argue that selling ordinary shares to fund more bitcoin purchases and a preferred-share buyback concentrates risk and may dilute existing shareholders, especially if bitcoin falls or the market’s view of the company changes. Buying at an average price above the company’s overall cost basis could also look like adding exposure after a rise, while the financing and capital allocation choices may complicate its balance sheet. The pending MSCI review adds uncertainty about whether index treatment will support continued investor demand.
Explained simply
Strategy is a US company that develops business software and holds a large amount of bitcoin. It funds its bitcoin purchases mainly by selling ordinary shares, which give investors part ownership of the company, and by issuing other types of securities.
STRC is one of Strategy’s preferred shares, a type of investment that can pay dividends and has different terms from ordinary shares. Buying back these shares reduces the amount held by investors. Strategy’s large bitcoin holdings also make it a test case for how stock indexes treat companies whose value is closely tied to one asset.