Strategy, a prominent Bitcoin-focused corporate treasury and investment firm led by Michael Saylor, spent $208.2 million repurchasing its STRC preferred shares last week, a figure more than three times its Bitcoin investment for the same period.
STRC buybacks overshadow Bitcoin acquisitions
According to a Monday 8-K filing with the Securities and Exchange Commission, Strategy allocated $65.5 million to purchase 811 Bitcoin at an average price of $80,846 per coin. In contrast, the company spent heavily on its STRC preferred share buyback program, marking a substantial prioritization of STRC over further Bitcoin accumulation during the week.
The company’s use of capital for share buybacks follows a broader pattern observed in October, when it repurchased $664 million in STRC shares between October 1 and October 25. Over that same period, Strategy invested about $72 million in Bitcoin, reflecting a consistent trend of STRC buybacks outpacing direct Bitcoin buys.
Strategy’s recent filing indicates the company spent $208.2 million on STRC repurchases last week, compared to $65.5 million allocated for buying 811 Bitcoin, continuing a recent pattern of prioritizing share buybacks over Bitcoin acquisitions.
This emphasis on preferred share buybacks comes as the price of STRC preferred stock advanced by 0.1% in pre-market trading on Monday, reaching $99.22. This remains roughly 0.8% below the company’s $100 target price, a threshold the firm uses to govern new issuances.
Company policy prohibits issuing new STRC preferred shares below the $100 mark, limiting available funding from this source unless the stock rises above the target price.
Strategy sold about 1.18 million of its MSTR shares, raising $164 million in net proceeds. Of this amount, $65.5 million was used for Bitcoin purchases, while the remaining $98.5 million was allocated to its US dollar cash reserves.
As of Sunday, the company reported holding $132.7 million in USD cash and $4.79 billion in a separate US dollar reserve. These reserves position Strategy to continue both strategic share repurchases and Bitcoin investments amid market volatility.
Metaplanet follows with multi-billion yen share buyback
Metaplanet, a Tokyo-based Bitcoin treasury company, also reported major share buybacks. The firm spent approximately 25.27 billion yen ($160 million) to repurchase 96.45 million of its common shares from October 14 through Saturday. This represented around 7.1% of its issued shares.
Large-scale buybacks by both Strategy and Metaplanet reflect persistent efforts by crypto-focused companies to manage their capital structure while pursuing Bitcoin acquisition strategies.
Mini dictionary: Metaplanet is a Japanese publicly listed company known for its significant corporate Bitcoin holdings, similar to US-based MicroStrategy, and frequently engages in treasury management involving both equity buybacks and digital asset purchases.
| Company | Buyback Period | Buyback Amount | Shares Repurchased | Bitcoin Purchases |
|---|---|---|---|---|
| Strategy | Last week | $208.2 million (STRC) | Not disclosed | $65.5 million (811 BTC) |
| Strategy | Oct 1 – Oct 25 | $664 million (STRC) | Not disclosed | $72 million (BTC) |
| Metaplanet | Oct 14 – Saturday | 25.27 billion yen ($160 million) | 96.45 million | Not disclosed |
The continued accumulation of Bitcoin and share repurchases by companies such as Strategy and Metaplanet come as institutional discussion around Bitcoin’s hashrate and market prospects intensifies.
