Strategy Inc. spent nearly $205 million repurchasing STRC preferred stock last week, leaving its substantial Strategy Bitcoin holdings untouched. , the business intelligence software firm known for its aggressive Bitcoin acquisition strategy, spent nearly $205 million repurchasing its STRC preferred stock last week.
The move, disclosed in a Form 8-K on Monday, October 26, 2026, saw the company’s cash reserves significantly depleted while its substantial Strategy Bitcoin holdings remained untouched.
Between October 19 and October 25, Strategy bought back 2,068,459 shares of its STRC preferred stock, totaling $204.9 million. This marked the first full week after the board raised its preferred buyback cap to $3 billion from $2 billion. The company made no Bitcoin purchases during this period, leaving its impressive stack of 848,517 BTC unchanged.
Strategy Bitcoin holdings for shareholder value
The latest buyback represents a continuation of Strategy’s commitment to returning value to shareholders, particularly through its preferred stock program. This substantial repurchase followed earlier weeks where the company acquired $193.1 million and $192.4 million of STRC, respectively. It underscores a strategic pivot towards managing its capital structure.
By allocating funds to STRC repurchases, Strategy aims to reduce future dividend requirements at a discount. The average price paid per STRC share last week was approximately $99.06, just under its $100 par value. President Phong Le previously highlighted that buying back STRC below par is an attractive capital allocation.
Executive Chairman Michael Saylor has been a vocal proponent of this dual strategy, balancing the company’s software business with its digital asset treasury. His Saylor’s Bitcoin advocacy remains central to Strategy’s identity. However, the recent focus has clearly shifted to preferred share repurchases, especially as the price of Bitcoin has hovered around the $80,000 mark.
Strategy’s Bitcoin holdings, acquired for a combined $64.02 billion at an average of about $75,446 each, including fees, currently boast a market value around $68 billion. Despite this, the company opted not to use its at-the-market (ATM) program for stock sales this past week, a mechanism it had previously used to fund Bitcoin acquisitions.
Strategic Capital Allocation and Cash Management
Funding for the STRC repurchases came entirely from Strategy’s “USD Cash” reserves, which are designated for general purposes, including Bitcoin purchases. This aggressive buyback significantly reduced the company’s available USD Cash from $447.3 million on October 18 to just $242.4 million by October 25 — a substantial 46% decrease.
Fortunately, Strategy maintains a separate “USD Reserve” of $4.83 billion. This reserve is specifically earmarked for supporting preferred dividends and servicing debt interest, remaining untouched by the recent STRC buyback activity. Michael Saylor clarified the company’s total dollar holdings at $5.1 billion in a recent post on X, also noting the “USD Duration is 3.4 yrs”.
Understanding Strategy’s Bitcoin Stance
Strategy, formerly known as MicroStrategy, has been the world’s largest corporate holder of Bitcoin since August 2020. This pioneering move redefined corporate treasury management, with Executive Chairman Michael Saylor leading the charge. Saylor has consistently positioned Bitcoin as a strategic long-term asset, a hedge against inflation, and a superior store of value.
The company’s rebranding to “Strategy” in August 2025 underscored its deeper integration of Bitcoin into its core identity. While its original enterprise analytics software business continues to operate, the digital asset strategy is widely seen as the dominant factor driving the company’s stock performance. This dual model highlights a unique approach to corporate finance.
Saylor’s firm stance is that Strategy will not sell its Bitcoin, but rather acquire and hold it continuously. This commitment is well-documented, even as the company occasionally uses mechanisms like ATM offerings to fund these purchases. The consistent accumulation has made Strategy a bellwether for institutional Bitcoin adoption.
The decision not to buy Bitcoin last week, even as the price hovered near $80,000, reflects a strategic pause. With the average purchase price for its substantial Bitcoin stack at approximately $75,446, the company currently sits on significant unrealized gains. This pause suggests a measured approach, possibly awaiting more opportune entry points.
The Mechanics of Preferred Stock Buybacks
Preferred stock, like Strategy’s STRC, differs significantly from common stock (MSTR). It typically offers fixed dividend payments and holds a higher claim on a company’s assets and earnings than common shares. Companies issue preferred stock to raise capital without diluting the voting power of existing common shareholders, appealing to income-focused investors.
Strategy’s aggressive repurchasing of its STRC preferred stock serves multiple financial objectives. By reducing the number of outstanding preferred shares, the company effectively lowers its future dividend obligations. Buying these shares below their $100 par value, as it did last week at an average of $99.06, represents an immediate financial gain for the company.
The recent increase in the preferred buyback cap to $3 billion signals a long-term commitment to this capital management strategy. With $956.8 million still available under this program, Strategy has considerable room for further repurchases. These buybacks can enhance earnings per share (EPS) and make the company’s valuation metrics more attractive to investors.
Shareholder confidence is also boosted by such programs. They signal that management believes the stock is undervalued, acting as a direct return of capital to shareholders. This also helps offset potential dilution from employee stock options or other capital-raising activities.
Upcoming Shareholder Vote and Market Implications
Beyond the recent buybacks, Strategy faces another significant event on October 28: a shareholder vote concerning dividend payments. Common shareholders will decide on switching STRC and its three other U.S.-listed preferred shares to daily dividend payments. This change could impact how these preferred instruments are perceived and traded.
The company’s continuous adjustments to its capital structure and treasury strategy are closely watched by the market. Notably, Strategy’s Bitcoin buys had been gradually declining over the past month, culminating in no purchases last week. This trend, coupled with the focus on preferred stock, provides insight into its current capital allocation priorities.
Market analysts are also monitoring Strategy for potential exclusion from MSCI’s equity indexes. A new rule targeting non-operating firms could impact Strategy, given its unique dual business model. Such an exclusion could affect institutional investment flows into its MSTR common stock.
But the overriding narrative for many investors remains Strategy’s long-term Bitcoin strategy. The company’s total Bitcoin purchases since October began amount to approximately $72.3 million for 851 BTC, illustrating that while current focus is on STRC, the underlying conviction in Bitcoin remains. The market awaits further cues on how the firm will balance its capital protection goals with its ongoing Bitcoin accumulation.