MicroStrategy Cash Reserves Drop 45% After Stock Buybacks
The company prioritized repurchasing preferred shares over Bitcoin acquisitions last week.
MicroStrategy saw its available cash drop by 45.3% in the week ending November 1. The balance fell from $242 million to $133 million during that period.
The reduction occurred because spending on preferred share buybacks outweighed the amount invested in Bitcoin. The company spent $208 million to repurchase approximately 2.09 million preferred shares.
In the same timeframe, the firm acquired 811 Bitcoin units for $66 million. The average purchase price for the cryptocurrency was $80,846 per unit.
The total amount of Bitcoin held by MicroStrategy reached 849,327 units. The cumulative cost for these acquisitions totals $64 billion to date.
Beyond its operational cash, the company maintains a separate reserve of $4.79 billion. This amount is reserved exclusively for paying preferred stock dividends and debt interest.
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