Why Is Strategy Pouring Triple Its Bitcoin Budget into STRC Buybacks?

Ever wonder what’s more captivating than Bitcoin itself? Well, Michael Saylor’s Strategy might just have you scratching your head — they splurged over three times more on buying back STRC preferred shares than on snagging fresh Bitcoin last week. Now, isn’t that a curious twist for a company so entwined with crypto? They funneled a cool $208.2 million into STRC buybacks, while only about $65.5 million went toward adding 811 Bitcoin to their stash, according to their latest SEC filing. And here’s the kicker: despite selling 1.18 million MSTR shares to bankroll some of these moves, Strategy is playing it safe with cash reserves and staying cautious around STRC’s sub-$100 price point. It’s almost like watching a master chess player ponder each move—except the pieces are millions of dollars worth of digital and preferred stock assets. If you’re intrigued by the dance between stock buybacks and crypto acquisition, you’ll want to dig deeper. LEARN MORE.

Michael Saylor’s Strategy spent more than three times as much buying back its STRC preferred shares as it did acquiring Bitcoin last week.

Strategy repurchased $208.2 million in STRC and spent about $65.5 million buying 811 Bitcoin (BTC) at an average price of $80,846, according to a Monday 8-K filing with the Securities and Exchange Commission.

Strategy sold about 1.18 million MSTR shares for net proceeds of $164 million. About $65.5 million funded its Bitcoin acquisition, while the remaining $98.5 million was allocated to the company’s USD Cash balance, according to the filing. The company held $132.7 million in USD Cash and $4.79 billion in its separate US dollar reserve as of Sunday.

The latest purchases followed about $664 million in STRC buybacks between Oct. 1 and Oct. 25, compared with about $72 million in Bitcoin acquisitions over that period.

Strategy’s STRC preferred stock rose 0.1% in pre-market trading on Monday, to $99.22, or about 0.8% below its $100 target price, according to Yahoo Finance. Strategy’s policy is not to issue new STRC shares below $100, limiting that source of funding while the stock trades below its target.

Another Bitcoin treasury company, Japan’s Metaplanet, reported buybacks of its common shares on Monday. It spent about 25.27 billion yen ($160 million) to buy back 96.45 million shares between Oct. 14 and Saturday, representing roughly 7.1% of its issued shares.

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