Strategy skips Bitcoin buy to repurchase $176M of STRC preferred shares
Michael Saylor’s Strategy paused its weekly Bitcoin purchases to repurchase $176.3 million of its STRC preferred shares and doubled the size of its digital securities repurchase program to $2 billion, the company said in an SEC filing. The firm still holds 845,050 BTC, acquired for $63.6 billion at an average of $75,412 per coin, and made no new Bitcoin buys during the repurchase period.
Why It Matters
The move shifts cash use from buying Bitcoin to returning capital to preferred shareholders and enlarges a program for repurchasing digital securities, decisions that affect how Strategy funds future Bitcoin accumulation and dividend payouts. Trading of STRC below its $100 par value complicates the company’s ability to raise funds via additional STRC sales and could influence dividend policy.
Key Facts
- Repurchase amount: $176.3 million
- STRC shares repurchased: 1.8 million
- Repurchase period: Aug. 31 to Sept. 7
- SEC filing date (reported): Tuesday (per source)
- Digital Credit Securities Repurchase Program size: doubled to $2 billion from prior size (unspecified)
Strategy — described in the filing as the largest corporate Bitcoin treasury and associated with Michael Saylor — elected not to make its regular weekly Bitcoin purchase while it bought back STRC preferred shares. The company repurchased about 1.8 million STRC shares for a total of $176.3 million between Aug. 31 and Sept. 7, according to its filing with the U.S. Securities and Exchange Commission.
Alongside the preferred-stock repurchase, Strategy expanded its Digital Credit Securities Repurchase Program to $2 billion. The filing showed no new Bitcoin acquisitions during the repurchase window; Strategy’s reported Bitcoin holdings stand at 845,050 BTC, which the company says were accumulated for a total of $63.6 billion at an average cost of $75,412 per coin.
Market data cited in the filing period indicated STRC was trading around $97.70 in premarket activity, about a 2.3% discount to its $100 par value, while the company’s Nasdaq-listed common shares were lower by more than 3% at the same snapshot. Because STRC has traded below par, Strategy faces limits on raising capital through additional STRC sales and may need to adjust dividend policy; the company raised the annual dividend rate on STRC to 12% under a capital framework it unveiled on June 29 that allows Bitcoin sales to fund dividends.
Other publicly traded corporate treasuries continued buying Bitcoin even as Strategy paused. Strive disclosed purchasing 1,375 BTC for roughly $109 million at an average price of $79,281, bringing its total to 24,531 BTC. France-listed Capital B also reported a $25 million acquisition, its largest in nearly a year. Strategy itself had resumed buying last week with a $370 million purchase — its first BTC buy since mid-June — before pausing again during the STRC repurchase period.
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