Strategy buys 811 bitcoin for $65.5M as dollar assets reach $4.9B

What happened

Strategy bought 811 bitcoin for about $65.5 million, the company disclosed on Monday, Nov. 2, resuming purchases after a one-week pause. The bitcoin was acquired between Oct. 26 and Nov. 1 at an average price of $80,846 per coin, according to CoinGape and Bitcoin.com News.

The purchase raised Strategy's total bitcoin holdings to 849,327 BTC. The company said the position was worth roughly $65.9 billion in its SEC filing, while the cumulative cost of building it has reached $64.08 billion, or an average of $75,451 per bitcoin.

Strategy funded the bitcoin purchase through its at-the-market offering program. Sales of 1,178,552 MSTR shares generated about $164 million in net proceeds; $65.5 million went to bitcoin and $98.5 million was allocated to the company's USD cash account, CoinGape reported.

In the same week, Strategy repurchased 2,092,035 STRC preferred shares for $208.2 million. The company said it used $132.7 million in USD cash on Nov. 1 to finance those transactions. After paying a $43.4 million preferred stock dividend, its USD reserve stood at $4.79 billion; Bitcoin.com News described the company's dollar assets as $4.9 billion.

Why it matters

The disclosure reinforces Strategy's position as a leading corporate bitcoin holder and shows that it is still deploying capital into the asset despite recent price weakness. It also highlights how the company pairs bitcoin accumulation with active management of its preferred stock and dollar liquidity.

The STRC repurchase is part of Strategy's Digital Credit Capital Framework, which Bitcoin.com News said is intended to support its credit markets and long-term shareholder value. Strategy said its combined dollar assets could cover dividend and interest payments for about 3.3 years, according to CoinGape.

What the data shows

Key figures from the disclosure: 811 BTC purchased for $65.5 million; average purchase price of $80,846; total holdings of 849,327 BTC; total cost of $64.08 billion; average cost of $75,451 per bitcoin; reported value of about $65.9 billion.

Funding came from 1,178,552 MSTR shares sold for about $164 million. Strategy allocated $65.5 million to bitcoin and $98.5 million to USD cash. It also bought 2,092,035 STRC preferred shares for $208.2 million and used $132.7 million in USD cash on Nov. 1. Its USD reserve was $4.79 billion after a $43.4 million dividend, and Bitcoin.com News put dollar assets at $4.9 billion.

Strategy reported a 3.7% negative bitcoin yield year to date. MSTR closed Friday at $130.51 after falling 9.6% for the week, while bitcoin declined 3.6%. The stock rose to $133 in Monday premarket trading, up 1.91% from Friday's close.

Background

Strategy's latest purchase follows a one-week break from bitcoin buying. In the prior week, the company made no bitcoin purchase and instead repurchased preferred shares. Earlier in October, it bought 267 BTC for $22.1 million.

The update comes after Strategy reported third-quarter earnings on Oct. 29. Net income was $19.53 billion, boosted by a $20.91 billion increase in digital assets revenue, while software revenue fell 3% to $125.4 million. Bitcoin.com News described the quarter as Strategy's best on record.

Michael Saylor, Strategy's executive chairman, has maintained a bullish view. In an October interview he said the market was entering another bullish phase but did not promise a year-end recovery. During the earnings announcement, he again described the market as being at the beginning of a bull run, according to CoinGape. Saylor also teased the latest purchase on Sunday with a bitcoin tracker post.

What to watch

Market observers will watch whether bitcoin can recover above $100,000, the level Saylor has said it could reclaim, and whether Strategy keeps using its at-the-market program to fund further purchases. The company's preferred-share buybacks and the size of its dollar reserve will also be in focus after the latest disclosure.

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