Strategy spent significantly more on STRC share buybacks than on new Bitcoin purchases last week, highlighting a notable shift in the company’s capital allocation strategy.
The Michael Saylor-led company purchased 334 Bitcoin for approximately $28.7 million during the week. At the same time, it spent about $176.3 million repurchasing roughly 1.77 million shares of STRC preferred stock.
Strategy Adds 334 Bitcoin to Its Holdings
According to a filing with the U.S. Securities and Exchange Commission, Strategy acquired 334 Bitcoin between Monday and Sunday.
The latest purchase increased the company’s total Bitcoin holdings to exactly 848,000 BTC.
However, the amount spent on Bitcoin was relatively small compared with Strategy’s STRC repurchase activity during the same period.
The company allocated more than six times as much capital to STRC buybacks as it did to Bitcoin purchases.
STRC Buybacks Take Priority
Strategy repurchased approximately 1.77 million STRC preferred shares for $176.3 million last week.
The move highlights the growing importance of the company’s preferred-stock structure in supporting its broader Bitcoin treasury strategy.
Strategy is also seeking shareholder approval for changes to the way dividends are paid across its preferred securities.
Strategy Proposes Daily Preferred Stock Dividends
In a separate proxy filing, Strategy proposed paying regular dividends on STRC, STRF, STRK and STRD every business day.
Currently, STRC pays dividends twice per month, while the other preferred securities follow quarterly payment schedules.
Strategy said the proposed change would not alter dividend rates or increase its overall payment obligations.
Instead, the company believes more frequent payments could reduce the time investors wait before reinvesting dividends. It could also improve liquidity and help stabilize preferred-share prices.
Shareholders are expected to vote on the proposal at a special meeting on October 28.
If approved, STRC would begin making daily dividend payments in November. STRF, STRK and STRD would move to daily payments in January.
Bitcoin Holdings Grew Only Slightly in the Third Quarter
Strategy’s Bitcoin holdings increased by just 0.2% during the third quarter as Bitcoin sales offset most of the company’s purchases.
During the quarter, Strategy acquired 7,218 BTC but sold 5,553 BTC.
As a result, its Bitcoin holdings increased from 846,000 BTC at the end of June to 847,666 BTC at the end of September.
The net increase of 1,666 Bitcoin was worth approximately $143 million based on prices at the time of publication.
Bitcoin Accumulation Slows Sharply From Q2
The third-quarter increase represented a major slowdown compared with the previous quarter.
During Q2, Strategy expanded its Bitcoin holdings by nearly 11%, rising from 762,099 BTC to 846,000 BTC.
By comparison, Bitcoin accumulation was relatively limited during Q3.
Meanwhile, Strategy spent approximately $1.38 billion repurchasing STRC preferred shares during the quarter.
That difference further illustrates the company’s increasing focus on managing its preferred-stock structure alongside its Bitcoin holdings.
Strategy Reports Major Digital Asset Gain
Strategy also reported a preliminary gain of approximately $20.91 billion on its digital assets during the quarter.
The gain was largely driven by an increase in the fair value of the company’s existing Bitcoin holdings.
Strategy remains one of the world’s largest corporate holders of Bitcoin, making changes to its purchasing and financing strategy closely watched by cryptocurrency investors.
MSTR and STRC Shares Trade Higher
Strategy’s MSTR shares rose around 2.9% in premarket trading on Monday to approximately $164.60.
STRC traded close to its $100 stated value at around $99.45.
Bitcoin, meanwhile, was trading near $86,063 at the time of publication.
Investors will now be watching whether Strategy continues prioritizing STRC repurchases over aggressive Bitcoin accumulation and whether shareholders approve its proposed shift toward daily dividend payments.
