Strategy Spends Triple Its Bitcoin Outlay on STRC Buybacks
Strategy spent $208.2 million last week repurchasing its STRC preferred shares, more than three times the $65.5 million it put into Bitcoin. According to a Monday SEC filing, the company bought 811 BTC at an average of $80,846. It funded both actions by selling about 1.18 million MSTR common shares for $164 million.
The remaining $98.5 million went to the company’s USD Cash balance, which stood at $132.7 million on Sunday. Strategy also holds a separate US dollar reserve of $4.79 billion. Total holdings reached 849,327 BTC, bought for $64.08 billion at an average of $75,451.
Where Bitcoin Stands
Bitcoin trades near $77,900 today, so the full stack is worth roughly $66.2 billion. That is about $2 billion above cost. The 811 coins bought last week cost more than they are worth today, since the average price paid exceeded the market by around $3,000.
The pace of accumulation has slowed sharply. Strategy held 846,842 BTC in mid-June, which means it added only about 2,500 coins in four and a half months.
How STRC Works
STRC is a variable-rate perpetual preferred stock that Strategy launched in July 2025 at a 9% dividend. It carries a $100 stated amount. Strategy was meant to adjust the rate so the shares trade near that price.
When STRC traded above $100, Strategy sold new shares and used the proceeds to buy Bitcoin. That made STRC the main engine of its purchases. On April 20, the company bought 34,164 BTC for $2.54 billion, funded largely through STRC, bringing holdings above 815,000.
The Slide Below Par
The engine stalled in the spring. STRC fell below $100, and by June 17 it closed at $89, then the lowest close on record. It later dropped to the low $70s. Strategy paused new issuance because selling shares below par loses money.
On June 29, the company set a new framework. It raised the dividend to 12%, moved payments to a semi-monthly schedule and built a larger dollar reserve. It also adopted a policy of issuing no STRC below $100 and authorized $1 billion in preferred share buybacks.
The first purchase came in late July: $25 million of STRC at an average of $86.52. CEO Phong Le said the company would resume issuance and Bitcoin buying once STRC returned to par.
The Buyback Pace
Spending accelerated through the autumn. Strategy had spent about $635 million by early September. By September 21, cumulative repurchases had passed $1.12 billion, including a $174 million weekly purchase funded from cash reserves.
Between Oct. 1 and Oct. 25, buybacks reached about $664 million, against roughly $72 million spent on Bitcoin. Last week’s $208.2 million covered 2,092,035 shares. STRC now trades at $99.22 pre-market, about 0.8% below par.
Why Strategy Is Doing This
Every retired share removes a $12 annual dividend. Strategy’s yearly preferred dividend bill was about $1.24 billion in August, so shrinking the share count lowers a fixed cost. Buying below par also retires the preferred claim for less than its stated value.
Buybacks also lift the STRC price. A price near $100 is the condition for reopening the issuance channel that funded the largest Bitcoin purchases in the company’s history. The dollar reserve gives Strategy cover for dividends if that channel stays shut.
The Costs
The funding source is the weak point. Strategy is selling MSTR common stock to buy back preferred shares, which dilutes common shareholders. Critics such as Peter Schiff have already questioned the company’s reliance on repeated share issuance.
The benefit also shrinks as the price nears par. At $99.22, each share bought back saves under $1 of discount. The main gain is then the removed 12% dividend, and the purchase redirects capital that could have gone into Bitcoin. The company cannot restart large STRC-funded purchases until the shares hold $100.
The Wider Market
The backdrop is soft for Bitcoin demand. Spot Bitcoin ETFs saw $643 million in outflows in October after the Binance hack. Weak demand for new preferred issuance fits that pattern.
Metaplanet, Japan’s Bitcoin treasury company, also reported buybacks on Monday. It spent about 25.27 billion yen ($160 million) repurchasing 96.45 million of its own shares, roughly 7.1% of those issued. Two of the largest corporate Bitcoin holders are now returning capital to investors instead of adding coins.
What to Watch
The next test is whether STRC holds $99 to $100, which is the range Strategy has named as its target. A sustained move there would reopen new issuance and bring back large Bitcoin purchases. A slide back toward the $80s would keep cash flowing to buybacks and leave Bitcoin accumulation at its current slow rate.
