Strategy buys $28.7 million of Bitcoin but spends six times more on STRC buybacks
Michael Saylor's Strategy bought 334 Bitcoin for $28.7 million between Monday and Sunday, but spent far more over the same seven days on buying back its own stock. The company used $176.3 million to repurchase about 1.77 million shares of its STRC preferred stock, more than six times its Bitcoin buying budget for the week.
Both figures come from a Monday filing the company made with the US Securities and Exchange Commission. After the week's purchases, Strategy said it holds exactly 848,000 BTC.
The numbers behind the week
- 334 BTC purchased for $28.7 million, from Monday through Sunday
- Total holdings now reported at exactly 848,000 BTC
- About 1.77 million STRC shares repurchased for $176.3 million
- Preliminary digital asset gain of $20.91 billion reported for the third quarter
A preferred stock is a share that sits ahead of common stock when dividends are paid and often pays a fixed rate. Strategy has built a group of these preferred issues, including STRC, STRF, STRK and STRD. Buying back STRC means the company spends money on its own shares rather than adding to its Bitcoin pile.
What the SEC filing says
The weekly Bitcoin number comes from an 8-K form, a document public companies must file with the SEC to report major events, dated Monday, October 5. Strategy reported 334 BTC bought for $28.7 million and holdings of 848,000 BTC.
Strategy said in a separate proxy filing, also submitted Monday, that it wants shareholders to approve paying dividends on STRC, STRF, STRK and STRD every business day. Today STRC pays twice a month, while the other three pay quarterly. The company said the change would not alter dividend rates or its total payment obligations, but could reduce reinvestment delays and improve liquidity and price stability.
Bitcoin growth slowed sharply in the third quarter
Strategy's Bitcoin holdings rose just 0.2% in the third quarter. The company bought 7,218 BTC during the quarter and sold 5,553 BTC, ending September with 847,666 BTC. That compares with 846,000 BTC at the end of June.
The slowdown stands out against the second quarter, when holdings climbed nearly 11%, from 762,099 BTC to 846,000 BTC. The net 1,666 BTC added in the third quarter was worth about $143 million at the time the article was published. Over the same quarter, Strategy spent about $1.38 billion repurchasing STRC.
The company also reported a preliminary $20.91 billion gain on digital assets for the quarter, which it attributed largely to a rise in the fair value of the Bitcoin it already held.
What happens next
Shareholders will vote on the daily dividend proposal at a special meeting on October 28. If it passes, the daily schedule for STRC is set to begin in November, with STRF, STRK and STRD following in January.
Market data at publication
On Monday, Strategy's MSTR shares were up 2.9% in premarket trading at $164.60. STRC traded near its stated amount of $100, at $99.45, according to Yahoo Finance. Bitcoin traded around $86,063, according to CoinGecko.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.