True North’s STRC tracker estimates that Strategy raised about $22.6 million by selling its STRC preferred stock on Wednesday, enough to buy roughly 284 BTC.
Back at par
STRC touched $100 on Nov. 4 for the first time since May, recovering from a June low of $71.25.
The level matters because Strategy has kept a policy of buying back STRC below $100 while avoiding new issuance beneath that threshold.
Once the stock trades above $100, the company can sell fresh shares through its at-the-market program and potentially put the cash toward bitcoin.
Estimating the first day
According to True North, about 16% of the 2,087,939 STRC shares traded on Wednesday changed hands at or above $100, or roughly 328,874 shares.
Applying its default 70% capture rate, the tracker put estimated proceeds at $22.6 million, worth about 283.5 BTC at an average price of $79,571.
That is roughly 63% of the 450 BTC that make up daily bitcoin mining output, by True North’s count.
The numbers remain estimates until Strategy reports its actual sales in its weekly SEC 8-K filing, and Bitcoin.com News noted that crossing $100 does not automatically trigger new issuance or bitcoin purchases.
Buybacks came first
Strategy’s Nov. 2 filing showed no preferred shares sold through the ATM between Oct. 26 and Nov. 1.
Instead, the company spent $208.2 million repurchasing 2,092,035 STRC shares, while 811 BTC bought for $65.5 million were funded by sales of MSTR common stock.
That purchase lifted Strategy’s holdings to 849,327 BTC, and Executive Chairman Michael Saylor previewed it on Sunday, writing:
“We found room for even more orange.”
“We found room for even more orange.”
Analysts see more room to buy
Analysts at StoneX and TD Cowen said last week that Strategy is in a stronger position to buy bitcoin after stabilizing its preferred-stock financing.
TD Cowen analysts wrote:
“We view these developments as important primarily because deeper distribution and better liquidity could ultimately increase Strategy’s capacity to issue Digital Credit efficiently. That, rather than STRC’s trading price in isolation, remains the connection to MSTR common-equity holders.”
“We view these developments as important primarily because deeper distribution and better liquidity could ultimately increase Strategy’s capacity to issue Digital Credit efficiently. That, rather than STRC’s trading price in isolation, remains the connection to MSTR common-equity holders.”
After Strategy reported $19.5 billion in third-quarter net income, Saylor said:
“We’re at the beginning of the next bitcoin bull market. Banks are embracing bitcoin, bitcoin’s dominance among digital assets is growing, institutional demand is back, and bitcoin price is 21% above its 200-week moving average.”
“We’re at the beginning of the next bitcoin bull market. Banks are embracing bitcoin, bitcoin’s dominance among digital assets is growing, institutional demand is back, and bitcoin price is 21% above its 200-week moving average.”
