Strategy opts for bigger spending on STRC buybacks over BTC purchases

Strategy Technologies reported a sharp tilt in capital deployment last week, directing more than six times as much cash to repurchasing its STRC preferred stock as it did to buying Bitcoin. According to an 8-K filed with the SEC, the company acquired 334 BTC for $28.7 million between Monday and Sunday, and repurchased roughly 1.77 million STRC shares for $176.3 million over the same period. Separately, Strategy filed a proxy seeking shareholder approval to move dividend payments on four preferred issues—STRC, STRF, STRK and STRD—to a daily schedule. The company said the change would not alter dividend rates or its overall payment obligations but could shorten delays in reinvestment and support liquidity and price stability; shareholders will vote on the proposal at a special meeting on Oct. 28. If approved, STRC’s daily payouts would begin in November, with STRF, STRK and STRD transitioning in January. On a quarterly basis, Strategy’s Bitcoin accumulation slowed markedly in Q3. The company added 7,218 BTC during the quarter while selling 5,553 BTC, producing a net increase of 1,666 BTC and leaving it with 847,666 BTC at the end of September—up modestly from 846,000 BTC at the end of June. By contrast, Strategy repurchased about $1.38 billion of STRC during the quarter, underscoring the larger role preferred-stock activity is playing in the firm’s capital allocation. Market indicators published with the filing showed Strategy’s MSTR shares up 2.9% in premarket trading at $164.60, while STRC traded near its $100 stated amount at $99.45. CoinGecko data cited in the source put Bitcoin around $86,063 at the time of publication.