Strategy Spends $174 Million on Preferred Buybacks While Bitcoin Treasury Nears Record

TYSONS CORNER, Va. — Strategy spent $174.0 million repurchasing 1,771,238 shares of its STRC preferred stock during the week ending Sept. 20, more than double the $75.7 million it used to acquire Bitcoin during the third week of September.

According to an SEC Form 8-K filed on Monday, the enterprise software and cryptocurrency treasury firm drew down its newly established “USD Cash” holdings to fund corporate debt retirement and digital asset accumulation. The account was established by management last month to manage capital allocation across Bitcoin acquisitions, share repurchases, and general corporate expenses.

The STRC buyback was Strategy’s largest weekly preferred share repurchase since early September, rising from the $139.3 million spent on buybacks the previous week. Corporate buybacks of preferred stock are typically executed to optimize the capital structure and reduce long-term dividend obligations.

Strategy did not retire any other classes of outstanding equity. Its STRF, STRK, STRD, and MSTR common stock remained untouched, while the company reported zero sales under its at-the-market (ATM) offering program.

ATM programs allow public companies to incrementally sell newly issued shares directly into the secondary market at prevailing market prices. Strategy raised $333.7 million in a single week through ATM common stock sales in August.

The USD Cash account declined to $1.05 billion as of Sept. 20, compared with $1.30 billion a week earlier. Its weekly drawdown of $249.7 million almost exactly matches the combined outlay for the preferred stock buybacks and the latest Bitcoin purchases.

Strategy purchased 950 BTC for $75.7 million, paying an average price of $79,670 per coin, inclusive of fees and expenses. Its cryptocurrency portfolio remains the largest held by any publicly traded company in the world.

The latest acquisition brought Strategy’s total holdings to 846,000 BTC, accumulated at an aggregate cost of $63.80 billion and an overall blended average price of $75,416 per coin. The current buy price is roughly $4,250 above the firm’s overall cost basis.

Strategy is now within 1,363 coins, or approximately 0.2%, of its historical record. The company’s highest recorded treasury level was 847,363 BTC, reported on June 22. At its current acquisition pace, it would take approximately two weeks of consistent buying to surpass that milestone.

The move back toward the record follows a summer in which Strategy broke its long-standing corporate policy of never selling its digital assets. In May, the firm implemented a capital framework in June that authorized up to $1.25 billion in Bitcoin liquidations.

Under that program, Strategy sold 6,948 BTC over the summer months and generated approximately $432.5 million. The liquidations reduced its total holdings to a summer low of 840,447 BTC by August 10, the lowest treasury level recorded by the firm since May.

Since then, the company has reversed course and net-acquired 5,553 coins. The latest average purchase price of $79,670 was $15,408 higher than the $64,262 average price Strategy received when it liquidated 1,690 BTC during the week ending August 9.

Under its June asset-liquidation framework, Strategy still has approximately $820 million in remaining selling capacity. The firm also holds $5.04 billion in its “USD Reserve” account, designated to back preferred stock dividends and ongoing interest payments on its debt obligations.

The USD Reserve account fell by $57.4 million during the week. Beyond that reserve, Strategy retains the $1.05 billion USD Cash pool and substantial untapped credit facilities.

Strategy has $875.1 million in remaining authorization under its digital credit securities repurchase program. It also has an untouched $1 billion authorization dedicated specifically to repurchasing MSTR common stock.