Strategy Buys 811 Bitcoin for $65.5 Million, Lifting Holdings to 849,327
Key Facts
Strategy bought 811 Bitcoin for $65.5 million between October 26 and November 1, at an average price of $80,846 per coin, lifting its total holdings to 849,327 Bitcoin, according to a filing with the U.S. Securities and Exchange Commission. The holdings had a purchase cost of $64.08 billion, at an average cost of $75,451 per Bitcoin. The company funded the transaction with net proceeds from sales of its Class A common stock through its at-the-market offering program. The purchase coincided with repurchases of STRC preferred shares. The filings show that the company allocated separate funding sources for buying Bitcoin, repurchasing STRC and retaining cash for its obligations.
Strategy sold 1,178,552 MSTR shares, generating net proceeds of $164.0 million over the same period. It allocated $65.5 million of the proceeds to buy Bitcoin and added $98.5 million to its USD Cash balance, according to the company filing. The increase in Bitcoin holdings was thus linked to common stock issuance, rather than the use of its USD cash balance to fund the purchase. The average Bitcoin purchase price was $80,846, compared with an average cost of $75,451 for the holdings after adding the new units. The total cost of the holdings was $64.08 billion as of November 1.
The company repurchased 2,092,035 STRC shares for $208.2 million between October 26 and November 1. The preferred stock repurchase program had $748.6 million remaining available, according to the filing. The company used its USD Cash balance for these transactions, while that balance stood at $132.7 million on November 1. The filings do not say that the STRC repurchases were funded from the USD Reserve. The figures therefore provided a separate picture of MSTR share sales used to fund Bitcoin purchases and cash used to repurchase preferred shares.
The company's USD Reserve stood at $4.79 billion on November 1, alongside $132.7 million in USD Cash. Strategy used $43.4 million from the reserve to cover preferred stock distributions during the week. The company had reported a USD Reserve of $4.83 billion and USD Cash of $242.4 million on October 25, with the two balances providing about 3.4 years of coverage for preferred stock distributions and interest on outstanding debt at that date. A comparison of the two filings shows a decline in the dollar cash balance during the week, alongside use of part of the reserve for distributions. At the end of the period, the company still held a reserve earmarked for these obligations as well as a separate cash balance.
On the earnings front, Strategy reported revenue of $125.4 million in the third quarter of 2026, down 3% from $128.7 million in the same period of 2025. The company reported net income of $19.53 billion and diluted earnings of $44.75 per share, compared with net income of $2.79 billion and earnings of $8.42 per share a year earlier. Operating income was $20.91 billion, versus $3.89 billion in the third quarter of 2025. The accounting figures for operating income in both periods were attributed to digital asset gains of the same amounts. The results reflect a contrast between lower year-over-year revenue and higher reported net income for the quarter.
In the market, MSTR shares fell 9.6% during the week ended October 30, closing Friday at $130.51, according to data from The Block. EL7 data showed Bitcoin closing at $77,368.77 on the same day. Strategy said daily distributions on STRC would begin in November 2026, while keeping the annual distribution rate at 12.00%. Daily distributions on STRF, STRK and STRD are scheduled to begin on January 1, 2027, according to the company filing. The distribution schedule places these changes among the next announced steps for preferred shareholders.