Strategy went back to buying bitcoin last week, adding 811 BTC after a week without a purchase. The larger number in Monday’s Form 8-K filed with the SEC sat further down the page: $208.2 million spent buying back its own STRC preferred stock, more than three times what the company put into bitcoin over the same seven days.
The filing covers October 26 through November 1. It shows a company still adding to the largest corporate bitcoin treasury, while the STRC buyback takes most of its spare cash as it tries to hold its flagship preferred share close to the $100 level it was built around.
What the filing shows
Strategy bought 811 BTC for $65.5 million, an average of $80,846 per coin including fees. That brings its holdings to 849,327 BTC, acquired for a combined $64.08 billion, or $75,451 per coin on average.
The purchase was paid for by selling common stock. Strategy sold 1,178,552 MSTR shares through its at-the-market program for net proceeds of $164.0 million. Of that, $65.5 million went into bitcoin and $98.5 million went to the company’s USD Cash balance. It sold no preferred shares of any series during the week.
On the other side of the ledger, the company repurchased 2,092,035 STRC shares for $208.2 million. That works out to roughly $99.52 per share, just under STRC’s $100 stated amount. It also drew $43.4 million from its USD Reserve to pay preferred dividends. The $1.0 billion authorization for buying back MSTR common stock remains untouched.
Three weeks, one priority
A single week can mislead, so it helps to line up the filings since the board enlarged the buyback plan. In an October 19 filing, Strategy said directors had raised the cap on its preferred-stock repurchase program from $2.0 billion to $3.0 billion. At that point $1.16 billion of room remained.
Since then the pattern has been steady. STRC repurchases came to $193.1 million in the week to October 18, $204.9 million in the week to October 25 and $208.2 million last week, about $606 million in total. Bitcoin purchases over the same three weeks were $22.1 million, zero and $65.5 million, or roughly $88 million combined. For every dollar that went into bitcoin, close to seven went into retiring STRC.
The remaining capacity under the program now stands at $748.6 million. At the pace of the past three weeks, about $200 million a week, that would cover a little under four more weeks of buying unless the board raises the limit again. Strategy has not said whether it plans to.
A thinner cash cushion
The buybacks are coming out of the company’s USD Cash line, which is separate from the much larger USD Reserve set aside for dividends. USD Cash fell to $132.7 million from $242.4 million a week earlier, a drop of about 45%, even after the $98.5 million top-up from the stock sales. The USD Reserve slipped to $4.79 billion from $4.83 billion after the dividend payments.
In other words, the common-stock sales are now doing two jobs at once. Part of the money buys bitcoin. A larger part replenishes the cash that is being spent on STRC.
Why STRC gets the money
STRC is a variable-rate perpetual preferred that pays 12% a year and is designed to trade near $100. Strategy has said it will keep the rate at 12% until STRC shows “sustained, healthy trading near $100 per share,” and it began paying STRC dividends daily this month after shareholders approved the change, a shift we covered when STRC’s daily dividends began.
The average repurchase price has crept up from about $99.06 a share in the week to October 25 to about $99.52 last week, which suggests the buying is narrowing the gap to par. Cointelegraph reported that STRC was quoted at $99.22 in premarket trading on Monday and noted that Strategy’s policy is not to issue new STRC below $100, which explains why there were no preferred sales during the week.
That policy matters for the bitcoin side of the business. While STRC trades below par, that route to new capital stays shut, and common-stock sales are left as the main source of fresh money.
What to watch next
The finance team is also changing hands. In an October 29 filing, Strategy said chief financial officer Andrew Kang will resign effective November 5 for personal reasons. Chief executive Phong Le will serve as principal financial officer from November 6 through December 31, and Reza Virasteh, currently head of operations, becomes CFO on January 1, 2027.
The next weekly 8-K will show whether STRC buybacks keep absorbing most of the cash, whether STRC gets back to $100, and how much of the $748.6 million of repurchase room is left. A return to par would reopen preferred issuance and could shift the balance back toward bitcoin purchases.
FAQ
How much bitcoin does Strategy hold now?
Strategy holds 849,327 BTC, bought for a total of $64.08 billion at an average of $75,451 per coin, according to its November 2 filing.
Why is Strategy buying back STRC?
STRC is meant to trade near its $100 stated amount. Strategy has been buying it back while it trades below that level and does not issue new STRC under $100.
How much buyback capacity is left?
$748.6 million remains under the $3.0 billion preferred-stock repurchase program, after $208.2 million of STRC purchases last week.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
