Strategy’s November Filing Separates Bitcoin Funding From STRC Buybacks

Strategy’s 2nd November filing reports $65.5 million for 811 Bitcoin (BTC), $98.5 million allocated to USD Cash and $208.2 million in STRC preferred-share buybacks funded from USD Cash.

For the week to 1st November, bitcoin received about 40% of $164 million in common-share proceeds. The common share sales include shares unsettled as of 30th October.

How The Cash Balances Reconcile

The preceding weekly filing, dated 26th October, put USD Cash at $242.4 million. It reported $204.9 million of STRC repurchases for that earlier week, with no bitcoin purchases or sales. That previous week’s preferred repurchases occurred without any shares sold through the market issuance programme, according to the same filing.

USD Cash reconciles at $132.7 million: $242.4 million plus $98.5 million, less $208.2 million. This comparison does not trace settled dollars.

The earlier filing distinguishes USD Cash, intended for broader treasury purposes, from a separate USD Reserve intended to support preferred dividends and debt interest. Keeping those definitions separate matters when comparing money spent on repurchases with money earmarked for servicing financing obligations.

Common And Preferred Holders Have Different Claims

Nasdaq identifies STRC as Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock. The common shares sold to raise the new money and the preferred shares being bought back are different securities.

STRC’s variable rate and perpetual structure also limit what can be inferred about savings from the repurchase. A fixed annual dividend saving over a fixed remaining term would require assumptions about future rates and how long the shares would otherwise remain outstanding. The buyback amount alone does not supply those assumptions.

The Securities and Exchange Commission’s stock guidance explains that preferred holders generally receive dividends before common holders and have priority over them if assets are liquidated. Common shareholders hold the residual ownership claim. Replacing one class of capital with another changes which investors supply funding and which claims remain ahead of the common shares.

Our daily dividend report explains Strategy’s preferred payment timetable. Its quarterly results report separately distinguishes accounting profit from gross bitcoin holdings per assumed diluted share.