Strategy Adds 267 Bitcoin as STRC Buybacks Reach $193 Million
Strategy purchased another 267 Bitcoin for $22.1 million during the week ending October 18, expanding its holdings as the company continued buying back its preferred stock.
According to a Monday filing with the U.S. Securities and Exchange Commission, the company paid an average of $82,900 per Bitcoin, including fees. The latest purchase brings Strategy’s total holdings to 848,517 BTC, acquired for approximately $64.02 billion at an average cost of $75,446 per coin.
The company also repurchased $193.1 million worth of its STRC preferred shares during the same period, continuing a series of large buybacks in recent weeks.
Strategy Expands Bitcoin Holdings and Share Buybacks
Strategy funded most of its latest Bitcoin purchase by selling 140,872 shares of its MSTR common stock through its at-the-market offering program. The sale generated approximately $22 million, with the remaining $100,000 coming from cash reserves. The company did not sell any preferred shares during the week.
Meanwhile, Strategy bought back 1,938,780 shares of STRC, its variable-rate Stretch preferred stock, using $193.1 million from its general-purpose cash holdings.
The company's board also increased the authorized size of its digital credit securities repurchase program from $2 billion to $3 billion. Following the latest buybacks and the expanded authorization, approximately $1.16 billion remained available under the program as of October 18.
Strategy has a separate repurchase program for its MSTR common stock, which still had $1 billion available.
Cash Reserves Decline After Dividend Payments
Strategy continued using its cash reserves to cover dividend and interest obligations. During the week, the company paid $45.5 million in dividends from its USD Reserve, which is designated to support preferred stock dividends and debt interest payments.
As of October 18, Strategy held $4.83 billion in its USD Reserve and another $447.3 million in general-purpose USD Cash. A week earlier, those balances stood at $4.88 billion and $640.5 million, respectively.
The latest STRC repurchase follows a $192.4 million buyback in the previous week and approximately $176 million in the week before that. Strategy has continued balancing its Bitcoin purchases with efforts to manage its preferred share capital.
MSCI Index Rules Pose Another Challenge
Strategy is also facing potential changes to its inclusion in major stock indexes. On October 15, index provider MSCI finalized a rule that excludes certain non-operating companies from its Global Investable Market Indexes when their balance sheets are dominated by a single asset.
The new policy is scheduled to take effect after the market closes on November 30, with MSCI expected to publish the list of affected companies on November 11.
If Strategy is removed from relevant indexes, funds that track those benchmarks could be required to sell their MSTR shares, potentially reducing demand from passive investors.
The company has objected to the proposed approach, arguing that the rule unfairly targets businesses that hold substantial digital assets. The outcome could become an important factor for Strategy as it continues expanding its Bitcoin treasury while managing its financing and capital-return programs.