Strategy Spent Nearly Nine Times More on STRC Buybacks Than Bitcoin

Strategy spent nearly nine times more repurchasing its STRC preferred stock than buying Bitcoin between Oct. 5 and Oct. 11, highlighting the scale of its capital allocation toward the security.

The company acquired 250 Bitcoin (BTC) for $21.5 million at an average price of $86,194 per coin, including fees and expenses. The purchase increased its holdings to 848,250 BTC, acquired for $64 billion at an average cost of $75,444 per BTC.

During the same period, Strategy repurchased 1,932,145 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock, which trades under the ticker STRC, for $192.4 million. Based on the disclosed amounts, Strategy’s STRC repurchases cost about 8.95 times as much as its Bitcoin purchases.

The company’s digital credit framework authorizes up to $1 billion in repurchases of preferred securities, including STRC. Strategy had $354.8 million remaining under that authorization as of Oct. 11, along with $1 billion available through a separate MSTR common-stock repurchase program.

Strategy funded $21 million of its Bitcoin purchases by selling 125,183 Class A common shares through an at-the-market program. The remaining $500,000 came from USD Cash. The company reported $4.88 billion in USD Reserve and $640.5 million in USD Cash as of Oct. 11.

Its policy designates the USD Reserve for preferred-stock dividends and debt interest, while STRC repurchases are not funded from that reserve. A July policy said Strategy would generally make larger STRC repurchases at deeper discounts below the stock’s $100 stated amount.

“At prices below $100 per share, STRC repurchases represent an attractive allocation of capital because they can reduce future preferred dividend requirements at a discount,” Strategy CEO Phong Le said.

“Strategy remains committed to Bitcoin as its primary treasury reserve asset,” founder and Executive Chairman Michael Saylor said.