Strategy Restarts Bitcoin Purchases With $65.5 Million Buy

Preface

Strategy resumed its Bitcoin purchases after pausing for one week, buying 811 BTC for $65.5 million between October 26 and November 1, according to a company filing with the U.S. Securities and Exchange Commission. The purchase coincided with a substantial buyback of the company’s variable-rate preferred shares, funded from its USD Cash account. Together, the transactions offer a snapshot of how Strategy is balancing Bitcoin accumulation, share repurchases, and liquidity management.

This article reviews the disclosed purchases and funding sources, the company’s current Bitcoin holdings and cash balances, and the new dividend schedule for STRC. It also outlines analyst commentary and the potential index eligibility issue identified in the source report. The central development is a return to Bitcoin buying alongside continued capital allocation and scrutiny of the company’s balance sheet.

Lazy bag

Strategy bought 811 BTC for $65.5 million at an average of $80,846 per coin, ending a one-week pause. It funded the Bitcoin purchase by selling 1,178,552 MSTR shares, generating $164 million in net proceeds. The company also repurchased 2,092,035 STRC shares for $208.2 million, drawing on USD Cash. Its holdings reached 849,327 BTC, acquired for $64.08 billion at an average of about $75,451 per coin. After the transactions, USD Cash stood at $132.7 million, while the separate USD Reserve was $4.79 billion.

Main Body

Bitcoin purchases resume

Strategy reported that it acquired 811 BTC for $65.5 million during the period from October 26 to November 1. The purchase ended a one-week pause in Bitcoin buying. According to the filing, Strategy paid an average of $80,846 for each coin. The company’s latest activity therefore returned to accumulation after it had temporarily directed attention away from new Bitcoin purchases.

The purchase was financed in part through the sale of 1,178,552 shares of MSTR stock. Those sales generated $164 million in net proceeds. Strategy allocated $65.5 million of the proceeds to Bitcoin and directed $98.5 million to its USD Cash account. The figures show that the company divided the capital raised between expanding its Bitcoin holdings and maintaining cash available for general purposes.

Following the purchase, Strategy’s Bitcoin holdings stood at 849,327 BTC. The company reported that it had acquired these holdings for a total of $64.08 billion, at an average cost of about $75,451 per coin. These totals describe the company’s cumulative acquisition position as reported in the filing; they are separate from the price paid for the latest 811 BTC purchase.

Preferred-share buyback and cash balances

Alongside its Bitcoin purchase, Strategy bought back 2,092,035 shares of STRC, its variable-rate preferred stock, for $208.2 million. The repurchase was paid entirely from USD Cash. The amount exceeded the $204.9 million spent on STRC repurchases the previous week, when the company paused Bitcoin buying for the first time since mid-September. In the week before that pause, Strategy had purchased 267 BTC for $22.1 million.

USD Cash is the company’s pool for general purposes, including potential Bitcoin purchases. After the reported activity, that balance fell to $132.7 million from $242.4 million a week earlier. The reduction reflects the substantial STRC repurchase and provides important context for assessing the funds available in this particular account. USD Cash is not the same as Strategy’s separately reported USD Reserve.

The separate USD Reserve is designated to cover preferred dividends and interest on Strategy’s debt. It stood at $4.79 billion after the company paid $43.4 million in dividends. In addition, about $748.6 million remained available under the company’s program for repurchasing preferred stock. Strategy described its combined USD assets as $4.9 billion and reported “USD Duration” of 3.3 years. The company uses USD Duration as a measure of how long those assets could cover dividend and interest obligations.

STRC’s daily dividend schedule

The transactions came as STRC moved to a new dividend schedule. Shareholders approved daily dividends on Strategy’s four preferred stocks during the previous week. For STRC, the first daily record date was November 1. A daily record schedule changes how frequently the relevant dividend record is established; it is distinct from the company’s Bitcoin purchasing activity and its cash reserve reporting.

The changes make the relationship between capital allocation and obligations especially relevant. Strategy is continuing to hold a large Bitcoin position while also repurchasing preferred shares and maintaining funds intended to support dividends and interest. The source report provides the disclosed balances and transaction amounts but does not establish that any one transaction caused a particular change in the company’s market valuation.

Analyst view and leverage figures

Mizuho Financial Group maintained its Outperform rating and $165 price target on MSTR following Strategy’s third-quarter earnings call, according to a summary of the firm’s note. The summary pointed to a stronger balance sheet and stated that net leverage had declined to 2.4% from 8.4%. These are the figures reported in the source; they should be considered alongside, rather than in place of, the company’s own filings and other financial disclosures.

The same analyst commentary included a concern about dilution. Analyst Dan Dolev noted that Bitcoin per share had fallen 3.7% this year. This measure is different from the company’s total Bitcoin holdings: it considers the amount of Bitcoin in relation to shares. As a result, the company can increase its total holdings while the per-share measure moves differently, depending on share issuance and other factors.

Potential index eligibility change

Strategy also faces possible removal from MSCI equity indexes under a rule the index provider finalized in October. The rule treats companies dominated by a single asset as ineligible. MSCI was expected to publish the list of affected companies on November 11. The source report describes a possible outcome, not a confirmed removal; the publication of the list would provide further information about which companies could be affected.

This issue matters because index eligibility can influence how a company is classified within certain benchmarks. However, the source does not quantify any potential market impact for Strategy. The reported rule and publication date should therefore be understood as a developing consideration rather than a completed change to the company’s index status.

Putting the disclosures together

Strategy’s latest filing presents several connected but distinct elements: renewed Bitcoin accumulation, a sizable STRC buyback, proceeds from MSTR share sales, and separate cash pools for general purposes and financial obligations. The company’s reported Bitcoin holdings reached 849,327 BTC, while USD Cash declined to $132.7 million and the USD Reserve stood at $4.79 billion. The reported $4.9 billion in combined USD assets and 3.3 years of USD Duration offer additional measures of liquidity and coverage, as described by Strategy.

These figures also sit alongside the company’s preferred-share dividend changes, Mizuho’s balance-sheet observations, the reported dilution concern, and the potential MSCI eligibility review. Taken together, they illustrate the range of considerations involved in evaluating a company that combines a large Bitcoin treasury with share issuance, preferred securities, and substantial cash obligations. The disclosures provide a factual basis for understanding Strategy’s recent decisions without resolving how investors or index providers will respond.

Key Insights Table