In a filing submitted to the U.S. Securities and Exchange Commission on October 26, Strategy revealed that it acquired $204.9 million worth of its STRC preferred stock during the week concluding on October 25, a period in which it executed neither Bitcoin purchases nor sales, keeping its stash at 848,517 BTC. The firm bought back 2,068,459 shares of STRC without utilizing its at-the-market offering program for sales, while its Bitcoin position stayed static with a total acquisition cost of $64.02 billion once fees are included.
The company's USD Cash balance decreased to $242.4 million, distinct from its separate $4.83 billion reserve fund. Following these recent moves, the capacity available for preferred-stock repurchases was $956.8 million. Strategy financed the STRC acquisitions using funds from its USD Cash account and noted in its October 26 disclosure that it did not buy back any MSTR common stock or other listed preferred shares.
STRC Repurchases Drive Cash Decline
Executive chairman Michael Saylor announced on X that Strategy held $5.1 billion in USD assets as of Oct. 25, rounding the reported purchase cost to $205 million for public disclosure. An approximate calculation based on the filing details divides the reported $204.9 million expenditure by 2,068,459 shares, resulting in an average acquisition price of approximately $99.06 per STRC share.
The company's STRC dashboard recorded a market close price of $99.36 on Oct. 23, which positioned the preferred stock 64 cents below its stated $100 amount. The dashboard further listed a variable annual dividend rate of 12% alongside an effective yield of 12.08%, reflecting the specific financial metrics available at that time.
During its second-quarter earnings discussion, CEO Phong Le stated that management intends to execute repurchases when STRC's trading price falls below $100, scaling these purchases according to market prices and liquidity conditions. He characterized these discounted buybacks as a strategic measure designed to reduce future preferred dividend requirements.
At the stated amount of $100 per share, the latest repurchases represent approximately $206.85 million of preferred stock, which differs from the reported purchase cost by roughly $1.95 million. Using the dashboard's current 12% annual rate, these repurchased shares correspond to approximately $24.8 million in annualized dividends, a calculation that assumes the rate remains unchanged and is separate from any company forecast of future savings.
Strategy divides its cash assets into two distinct groups. The USD Reserve is allocated to cover preferred dividends and debt interest obligations, whereas the USD Cash account finances Bitcoin acquisitions, reserve additions, and various capital management activities. A combined total of $5.1 billion reflects these merged categories. According to the Oct. 26 filing, the reserve held $4.83 billion while USD Cash totaled $242.4 million following the share repurchases.
One week prior, the USD Cash balance was $447.3 million. The recent expenditure on buybacks reduced this figure to $242.4 million, marking a drop of roughly 45.8%. In the previous reporting window, Strategy deployed $193.1 million from USD Cash for STRC repurchases and an additional $100,000 for Bitcoin purchases. Furthermore, the entity disbursed $45.5 million in preferred dividends drawn from the specific reserve, as noted in its Oct. 19 filing.
According to an Oct. 12 disclosure, the company reported a USD Cash balance of $640.5 million alongside a reserve totaling $4.88 billion. Management indicated that during that specific week, it utilized $500,000 of its USD Cash reserves for Bitcoin purchases, with additional funding derived from proceeds generated by common-share sales.
The report previously noted that Strategy acquired an additional 267 Bitcoin worth $22.1 million between October 12 and 18, a transaction that updated the company's retained holdings by October 25. A filing dated October 19 indicated that selling 140,872 MSTR shares yielded $22 million in net proceeds to finance almost the entire purchase, while no preferred shares were issued via the at-the-market program throughout that timeframe.
Bitcoin Holdings Remain Static
During the previous week, Strategy utilized $192.4 million to buy back STRC shares and spent an additional $21.5 million to secure 250 BTC, bringing the average cost per Bitcoin to $86,194 when fees are included. Over the three reporting intervals combined, the company repurchased $590.4 million worth of STRC against $43.6 million in Bitcoin acquisitions for 517 coins, meaning preferred-share buybacks were roughly 13.5 times larger than Bitcoin purchases.
Following the Oct. 19 filing, Strategy increased its authorization for digital credit securities repurchases to $3 billion from a prior $2 billion limit, a cap that accounts for completed transactions. Meanwhile, the distinct program for buying back MSTR common stock maintained its entire $1 billion capacity following the most recent week.