Strategy Prioritizes $950 Million STRC Buyback Over Bitcoin Accumulation

Strategy Inc. has made a strategic decision to prioritize a $950 million buyback of its STRC variable-rate preferred shares, overshadowing its Bitcoin acquisition efforts. Since July 20, the company has spent approximately $950.8 million on buybacks, more than double the amount allocated for Bitcoin purchases during the same period.

According to a filing on September 14, Strategy repurchased 1,420,467 STRC shares between September 8 and September 13, fully funded by its USD cash balance. Notably, the company did not engage in any Bitcoin transactions during this reporting period, nor did it sell any shares through its at-the-market program.

From July 20 to September 13, Strategy repurchased around 9.96 million STRC shares, while its Bitcoin purchases were limited to 4,603 BTC acquired for $369.7 million between August 24 and August 30. This indicates a spending ratio of approximately $2.57 on STRC for every $1 spent on Bitcoin.

Strategy's management has indicated that the buyback policy is designed to reduce future preferred-dividend requirements by repurchasing shares below their stated amount of $100. Although the company anticipates that buyback activities will taper as the share price approaches this threshold, the timing and amounts remain at their discretion.

As of September 13, Strategy held 845,050 BTC, and its flexible USD cash balance stood at $1.3 billion. The company also maintains a separate USD reserve of $5.10 billion, designated for preferred dividends and debt interest, which is not authorized for STRC repurchases.

Despite the focus on buybacks, the board has increased the preferred-security repurchase authorization to $2 billion, leaving about $1 billion available as of September 13. This provides Strategy with the flexibility to continue supporting its preferred shares while Bitcoin purchases may remain sporadic.