Strategy Spends Six Times More on STRC Buybacks Than Bitcoin in a Single Week

Strategy spent $176.3 million last week buying back STRC preferred stock, more than six times the $28.7 million it put into Bitcoin, the company said in Monday’s announcement.

Strategy (formerly MicroStrategy) made the repurchases in two tranches: 1,033,168 STRC shares for $102.6 million in the final days of September and 740,634 shares for $73.7 million between October 1 and 4. The buyback drew $154.1 million from the company’s USD Cash balance and $22.2 million of interest earned on cash and short-term investments, and $547.2 million of repurchase capacity remains.

Bitcoin buying got the smaller share. Strategy acquired 334 coins at an average of $85,838.80 each, funded by $15.7 million from the sale of 92,894 MSTR shares and $13 million from cash. Holdings stood at 848,000 BTC as of October 4, the company said in a post on X.

The quarterly numbers point the same way. Strategy bought 7,218 BTC in the third quarter and sold 5,553, so holdings rose 0.2%, from 846,000 coins at the end of June to 847,666 at the end of September. Over the same three months it spent about $1.38 billion on STRC repurchases, a preferred line that has traded below its $100 stated amount for months.

The company also reported a preliminary gain of $20.91 billion on digital assets for the quarter, a fair-value mark that reflects Bitcoin’s price appreciation from July through September and carries $1.88 billion of deferred tax expense. It is not realized cash, and it follows the $8 billion loss Strategy reported in August, when STRC traded below par and the company tapped its Bitcoin reserves to service the preferred stock.

Separately, Strategy asked shareholders in a proxy statement to approve daily dividend payments on all four preferred lines, STRC, STRF, STRK and STRD, replacing STRC’s twice-monthly schedule and quarterly payments on the other three. The company said the change would not alter dividend rates or its overall payment obligations. The vote takes place at a special meeting on October 28; if approved, daily payments on STRC would start in November, with STRF, STRK and STRD following in January.