Strategy’s Bitcoin Buying Slows as Preferred Stock Buybacks Surge, SEC Filing Delayed by Holiday
SEC holiday delays disclosure; Q3 equity raise mostly funded cash reserves and preferred retirement, not BTC
Strategy Chairman Michael Saylor signaled continued Bitcoin appetite Sunday with a cryptic post on X declaring “There’s always room for more orange,” but investors awaiting official confirmation of the company’s latest purchases will need to wait until at least Tuesday. The U.S. Securities and Exchange Commission is closed Monday for the Columbus Day holiday, pushing any new 8-K filing disclosing Bitcoin acquisitions to the next business day.
The most recent filing, dated Oct. 5, showed Strategy acquired 334 BTC for $28.7 million between Sept. 28 and Oct. 4, bringing its total holdings to exactly 848,000 BTC. That weekly purchase volume represents a sharp deceleration from the pace set earlier in the year, when the company routinely deployed hundreds of millions of dollars per week.
During the same seven-day window, Strategy directed $176.3 million toward repurchasing approximately 1.77 million shares of its STRC Series A perpetual preferred stock — more than six times the capital allocated to Bitcoin. The preferred shares carry an 8% annual dividend and rank senior to common equity in liquidation, making the buybacks a balance-sheet maneuver that reduces future fixed obligations.
Independent analyst Shanaka Anslem Perera, writing in his monthly Bitcoin newsletter, calculated that Strategy raised $5.41 billion through at-the-market common share offerings during the third quarter but increased its Bitcoin position by only 1,666 coins compared to the end of June. SEC filings indicate roughly 9.5% of the quarter’s proceeds were earmarked for direct Bitcoin purchases, with the remainder allocated to cash reserves, dividend payments, and the preferred-share repurchase program.
“Raising capital does not necessarily mean buying bitcoin,” Perera said in an interview. “For a shareholder, bitcoin per share is only part of the answer. Cash counts too, while debt and preferred shares have claims ahead of common stock.” He noted that retained cash preserves optionality for future purchases and that deleveraging the preferred stack strengthens the capital structure over time.
Strategy’s pivot toward preferred-stock retirement reflects a broader shift in capital allocation since the company adopted its “21/21 Plan” in July, targeting $21 billion each in equity and fixed-income financing over three years. The preferred buybacks reduce the company’s annual dividend burden by approximately $14.2 million based on the 8% coupon, freeing cash flow for potential Bitcoin acquisitions in later quarters.
Bitcoin traded near $63,000 during the Sept. 28–Oct. 4 purchase window, down from a quarterly high above $70,000 in late July. The company’s average acquisition cost across its entire 848,000 BTC position stands at roughly $38,600 per coin, implying substantial unrealized gains even after the recent pullback.
The next 8-K filing, expected Tuesday, will reveal whether Strategy resumed heavier Bitcoin buying in the week ended Oct. 11 or continued prioritizing preferred-stock reduction.
