Strategy, led by Michael Saylor and currently the largest corporate holder of Bitcoin, continued its aggressive capital allocation strategy last week. The company announced fresh Bitcoin acquisitions, while its repurchases of preferred stock climbed to significantly higher levels.
Major Bitcoin purchase and growing holdings
Between October 12 and October 18, Strategy acquired 267 Bitcoin at an average price of $82,900, spending a total of $22.1 million, as detailed in a filing to the US Securities and Exchange Commission. This brought the firm’s Bitcoin treasury to 848,517 BTC, affirming its position as the leading public company investor in the cryptocurrency.
The company financed this latest Bitcoin transaction primarily through the sale of 140,872 shares of its common stock, MSTR, generating $22 million in proceeds. MSTR is the publicly traded stock representing core ownership in Strategy, a US-based firm best known for its large-scale Bitcoin investments and digital asset strategy.
While Bitcoin accumulation continues, management’s focus has shifted increasingly toward preferred stock buybacks.
STRC buybacks outpace Bitcoin investments
Strategy repurchased 1.94 million shares of its Stretch (STRC) preferred stock during the same period, spending $193.1 million. The company also raised its authorization for digital credit securities repurchases to $3 billion, up from $2 billion previously.
In the fourth quarter so far, total STRC buybacks have reached $459.2 million, surpassing by more than six times the $72.3 million used for Bitcoin acquisitions during this period. STRC is a variable-rate preferred stock structured to deliver regular dividends to holders. The company has signaled its intent to repurchase these shares when trading below their $100 stated value as a means of price support.
Mini dictionary: STRC (Stretch preferred stock), a type of corporate equity with variable-rate dividends, allowing issuers flexibility in dividend payments and providing investors with a yield that adjusts to market conditions.
Strategy reported holding $4.83 billion in USD Reserve to secure preferred stock dividends and cover debt interest, with an additional $447.3 million in separate USD cash reserves. These financial cushions support the company’s active management of its capital structure.
| Transaction | Q4 Spend ($ million) | Units Acquired |
|---|---|---|
| STRC Repurchases | 459.2 | 1.94 million shares |
| Bitcoin Purchases | 72.3 | 851 BTC |
The company’s preference for buybacks over new Bitcoin investments marks a significant trend, even as Saylor, chairman and co-founder, reiterated his positive outlook on Bitcoin during an appearance at ParaFi Investor Day.
Saylor optimist on Bitcoin, market reaction mixed
Saylor described the current market climate as moving “back into a bull market,” referencing Bitcoin’s sustained levels above the 200-day simple moving average. He identified restrictive trade, foreign, and monetary policies as potential obstacles for Bitcoin, but also noted that rising institutional interest and the ongoing tokenization of traditional assets could offer upward momentum for the cryptocurrency.
“We’re moving back into a bull market,” said Saylor, highlighting Bitcoin’s climb above its 200-day simple moving average, a significant price trend indicator closely watched by analysts.
Ahead of Monday’s Nasdaq opening, shares of MSTR traded more than 2.5% higher in premarket activity. On Friday, the stock had closed at $138.83, down 9.6%. STRC shares saw a premarket increase of roughly 0.8% to $98.45, following a 1.8% decline the previous day.
Strategy has demonstrated a consistent approach to capital allocation, with stock repurchases now outpacing the company’s high-profile Bitcoin purchases during this quarter.
