Strategy’s STRC hit $100, but common stock still funded last week’s Bitcoin purchases

Strategy’s STRC hit a market price of $100 on November 4, but the company used proceeds from selling common MSTR shares to buy Bitcoin and repurchase its own preferred shares.

The allocation shows that about two-thirds of the new common-stock money went into buying back preferred shares, while less than a third went into Bitcoin.

Strategy’s July 27 policy announcement said the company would not issue STRC below $100 and described a long-term objective of healthy, sustained trading near that level.

The issuance and dividend policies were statements of intent that could change.

Allocation of net proceeds

Of $283.8 million in net proceeds from MSTR common shares, $188.3 million funded STRC repurchases, $81.9 million funded Bitcoin purchases and $13.6 million went to USD Cash.

Bitcoin purchases absorbed 28.9% of the common-stock proceeds. STRC repurchases took 66.3%, or about 2.3 times the Bitcoin allocation, while USD Cash received 4.8%.

That makes the buyback program a substantial competing use of newly raised capital.

Strategy bought 1,036 BTC for $81.9 million during the week, at an average $79,012 per coin including fees and expenses.

Buybacks reduce preferred claims

Strategy bought back 1,887,464 STRC shares during November 2–8. Issuing MSTR expands the common-share base, while repurchasing STRC reduces preferred claims.

Strategy’s July policy described discounted repurchases as a way to reduce future preferred dividend requirements.

The policy also anticipated a greater repurchase pace at deeper discounts, tapering as STRC approached $100.

It left decisions subject to liquidity, market conditions and capital-allocation priorities.

Comparison with previous week

The preceding week also paired MSTR fundraising with STRC repurchases, but disclosed a different funding route.

In its November 2 filing, Strategy reported $164 million in MSTR proceeds: $65.5 million funded Bitcoin purchases and $98.5 million went to USD Cash.

It separately used $208.2 million of USD Cash for STRC repurchases.

For November 2–8, the company explicitly assigned MSTR proceeds directly to the buybacks.

Next steps

At November 8, USD Cash stood at $146.2 million, alongside a separate $4.77 billion reserve for dividends and interest.

Strategy used $21.1 million of that reserve to pay preferred dividends during the week.

The next financing development depends on reported issuer sales and the use of their proceeds.

STRC’s return to $100 provided a market-price milestone; the November 2–8 allocation shows that MSTR issuance supplied the disclosed money for both Bitcoin accumulation and preferred-share repurchases.