Strategy prioritizes $950 million STRC buyback over expanding its Bitcoin treasury

Strategy’s latest $139.3 million repurchase of STRC variable-rate preferred shares has brought its spending on buybacks to about $950.8 million since July 20, more than twice what it spent acquiring Bitcoin over the same period.

The company’s Sept. 14 filing disclosed purchases of 1,420,467 STRC shares between Sept. 8 and Sept. 13, funded entirely from its USD Cash balance. Strategy neither bought nor sold Bitcoin and sold no shares through its at-the-market program during that reporting period.

Across eight reporting periods spanning July 20 to Sept. 13, Strategy repurchased approximately 9.96 million STRC shares. Its reported Bitcoin purchases were confined to Aug. 24-30, when it acquired 4,603 BTC for $369.7 million.

That puts STRC repurchase spending at roughly $2.57 for every $1 spent buying Bitcoin during the window.

Cash goes toward preferred shares

The latest purchases extend a pattern, when cumulative STRC spending stood at $811.5 million. Supporting the preferred shares draws on money that could also fund Bitcoin accumulation.

In its July 27 buyback policy, the company said repurchasing shares below their $100 stated amount could reduce future preferred-dividend requirements at a discount.

Management expected purchases generally to taper as STRC approached $100, although timing and amounts remain discretionary. The policy gives Strategy a reason to spend on its own securities even when that spending does not add Bitcoin to its treasury.

Earlier in the campaign, Bitcoin sales helped finance those obligations. During July 27-Aug. 2, Strategy sold 1,638 BTC, using $52.4 million of proceeds for preferred dividends and $52.3 million for STRC repurchases.

The following week, it sold another 1,690 BTC for $108.6 million, using those proceeds to fund STRC buybacks.

The distinction between Strategy’s two dollar pools matters. As of Sept. 13, its flexible USD Cash stood at $1.3 billion. Its separate USD Reserve was $5.10 billion and designated for preferred dividends and debt interest.

Under the July 27 policy, that reserve was not authorized to fund STRC repurchases.

Strategy still held 845,050 BTC as of Sept. 13. The buybacks compete with further accumulation, but the eight-week comparison does not establish a permanent change in its Bitcoin strategy.

The board doubled the preferred-security repurchase authorization to $2 billion on Sept. 8, including earlier purchases. About $1 billion remained available as of Sept. 13, giving Strategy room to continue supporting its preferred shares while Bitcoin purchases remain intermittent.