Strategy Adds 1,036 Bitcoin as STRC Buybacks Outpace Purchases
Strategy bought 1,036 Bitcoin for $81.9 million last week, according to its Monday SEC filing. Its holdings now stand at 850,364 BTC, about 4.05% of Bitcoin’s 21 million supply. The company paid an average of $79,012 per coin.
The same week, Strategy spent $188.3 million repurchasing about 1.89 million shares of its STRC preferred stock. It raised $283.8 million by selling roughly 2.05 million MSTR common shares. The buyback received more than twice the Bitcoin purchase.
Where the Numbers Stand
Strategy has paid $64.16 billion for its Bitcoin, an average of $75,456 per coin. Bitcoin trades near $74,657, slightly below that cost. The position carries an unrealized loss of roughly $670 million.
Last week’s buy at $79,012 sits above the current price. Strategy also moved $13.6 million into its USD Cash balance, which rose to $146.2 million. Its separate USD Reserve fell to $4.77 billion after $21.1 million went to preferred dividends.
MSTR shares fell 3% to $125 in premarket trading on Monday. STRC traded at $99.70, just under its $100 par value.
How Strategy Got Here
Strategy held 673,783 BTC on January 4, 2026. It reported a $17.44 billion unrealized loss for the fourth quarter after Bitcoin’s price fell. The first quarter of 2026 brought a $14.46 billion unrealized loss and a $12.54 billion net loss. Fair-value accounting forces these swings into earnings every quarter.
The second quarter was worse for the preferred stock. Strategy posted an $8.32 billion loss on its digital assets and disclosed that it had sold Bitcoin to fund preferred stock distributions. STRC slid to between $74 and $88 by mid-2026, far below its $100 par value.
Strategy responded with a capital framework adopted on June 29. It created a dedicated USD Reserve for preferred dividends and debt interest, plus a repurchase program for STRC, with a goal of keeping the price between $99 and $100. By August 10 the reserve had grown from $2.55 billion to $4.65 billion.
The framework also allowed Bitcoin sales. In the week of August 3 to 9, Strategy sold 1,690 BTC for $108.6 million and bought back STRC at an average of $94.27. The holdings count has grown since, but the company has shown it will sell coins to defend the preferred.
The Shift Toward Buybacks
In September, Strategy still favored Bitcoin. In the week ending September 20 it bought 950 BTC and repurchased $174 million of STRC, with a USD Reserve of $5.04 billion and USD Cash of $1.05 billion.
October reversed the balance. In the week of October 5 to 11, Strategy bought 250 BTC for $21.5 million while retiring $192.4 million of STRC. In the week ending October 25 it bought no Bitcoin and repurchased about $205 million of STRC.
Last week’s filing extends the pattern. The company bought 811 BTC the prior week and 1,036 BTC in the latest one. Since the start of October it has spent about $1.06 billion on STRC buybacks and $219.7 million on Bitcoin.
USD Cash shows the cost. The flexible pool fell from $1.05 billion in September to $146.2 million now. The restricted reserve stayed above $4.7 billion.
What Works in This Approach
The buybacks hold STRC near par, which keeps the preferred a usable funding tool. Retiring about $189 million of stated value last week also cuts future payouts. At the 12% rate cited in Strategy’s August briefing, that saves roughly $22.7 million a year.
The reserve gives dividend payments a long runway. Saylor put the USD Duration at 3.4 years in late October. Strategy can pay preferred holders through a long Bitcoin downturn without selling coins.
What Carries Risk
The buybacks are paid for by selling common stock. Each MSTR share sold dilutes existing shareholders, and the stock is falling. Strategy is trading common equity for preferred debt-like obligations, while Bitcoin accumulation slows.
The cash buffer is also thin. At $146.2 million, USD Cash would not fund another month of heavy buybacks without new share sales. Those sales depend on the MSTR price.
Market conditions add pressure. Bitcoin sits below Strategy’s cost basis. U.S. Bitcoin ETFs just recorded $1.3 billion in weekly outflows, their largest since late June.
What to Watch Next
The Monday filings show the balance between Bitcoin buys and STRC repurchases. A move of STRC back above $100 would reduce the need for buybacks and free cash for Bitcoin. A further drop would push Strategy back toward the August playbook, which included Bitcoin sales.
