Michael Saylor’s Strategy has continued adding Bitcoin while simultaneously leaning heavily into buybacks of its preferred stock. In a filing made with the U.S. Securities and Exchange Commission (SEC) on Monday, the company detailed purchases of 267 BTC last week alongside a much larger scale repurchase program for its Stretch (STRC) preferred shares.
Strategy’s latest Bitcoin buys bring its total holdings to 848,517 BTC, while STRC repurchases have accelerated further—underscoring an ongoing capital allocation strategy that, at least for now, prioritizes supporting the preferred stock’s mechanics over increasing spot Bitcoin exposure at the same pace.
Key takeaways
- Strategy bought 267 BTC for $22.1 million at an average price of about $82,900 between Oct. 12 and Oct. 18, per an SEC filing.
- The company’s STRC preferred stock repurchases were far larger in scale—1.94 million shares for $193.1 million—during the same reporting window.
- Strategy repurchased STRC shares for $459.2 million in the fourth quarter so far, exceeding its Bitcoin spend over the same period (by more than 6x).
- Strategy increased its digital credit securities buyback authorization to $3 billion, up from $2 billion.
- Saylor reiterated confidence in a renewed Bitcoin bull market, pointing to BTC trading above its 200-day simple moving average.
More Bitcoin, but not the dominant use of cash
According to the SEC filing, Strategy purchased 267 Bitcoin for $22.1 million at an average price of $82,900 from Oct. 12 to Oct. 18. After the transaction, the company’s Bitcoin reserves stand at 848,517 BTC.
While the company did increase its BTC holdings, the filing makes clear that the bigger cash deployment came from its preferred stock buyback activity. Strategy reported buying 1.94 million shares of its STRC preferred stock for $193.1 million and also expanded its buyback authorization for its digital credit securities to $3 billion from $2 billion.
Taken together, the numbers highlight a pattern investors have been watching: management appears to be directing more incremental funding toward STRC repurchases than toward new Bitcoin accumulation, even while maintaining a bullish stance on BTC’s longer-term trajectory.
Fourth-quarter spending shows STRC buybacks outpacing BTC buys
The SEC filing also provides a useful comparison across the company’s recent spending priorities. Strategy reported that it has spent $459.2 million repurchasing STRC shares so far in the fourth quarter, more than six times the $72.3 million it spent acquiring 851 Bitcoin during the same period.
Strategy said the latest Bitcoin purchase was funded primarily through proceeds from selling common stock. The company sold 140,872 shares of its common stock (MSTR) to generate about $22 million in proceeds and used existing cash for the STRC repurchases.
STRC is designed to pay regular, variable-rate dividends, and Strategy has previously stated it intends to repurchase STRC shares that trade below their $100 stated value. In this context, larger buybacks may be viewed by the market as a way to help support the preferred stock’s price and dividend structure—even if it means slower growth in spot Bitcoin holdings compared with periods when BTC buys dominate.
The filing further states that Strategy has $4.83 billion in USD Reserve capacity to support preferred stock dividends and debt interest payments, alongside $447.3 million in separate USD cash holdings.
Saylor ties the strategy to a renewed Bitcoin bull cycle
The heavier emphasis on STRC repurchases arrives alongside fresh public comments from Saylor about Bitcoin’s outlook. During a discussion at ParaFi Investor Day on Saturday, Saylor said the company is “moving back into a bull market.”
He pointed to Bitcoin’s recovery above its 200-day simple moving average, an indicator widely used to gauge longer-term market trends. In the same remarks, Saylor cited restrictive trade, foreign, and monetary policies as headwinds for BTC, while highlighting potential tailwinds such as growing bank adoption and the tokenization of traditional financial assets.
For investors tracking Strategy’s behavior, the juxtaposition is notable: despite an explicitly optimistic view of BTC’s market cycle, the company’s disclosed fourth-quarter outlays have so far leaned more toward supporting STRC via buybacks than toward aggressively expanding its Bitcoin position.
Trading snapshot as MSTR and STRC react
Ahead of Monday’s Nasdaq open, MSTR shares were reported trading more than 2.5% higher in premarket activity, according to Yahoo Finance. The stock closed Friday down about 9.6% at $138.83 per share.
STRC shares also reportedly gained in premarket trading, rising around 0.8% to $98.45 after falling 1.8% on Friday, based on Yahoo Finance data.
These day-to-day moves don’t change the longer-term question raised by the SEC filing: whether Strategy’s capital allocation will continue to favor preferred stock repurchases and related buyback authorizations over faster Bitcoin accumulation—or whether a shift occurs if Saylor’s “bull market” expectation plays out in price action and market sentiment.
With Strategy having expanded its digital credit buyback authorization to $3 billion and sustained a pace of STRC repurchases that exceeds its Bitcoin buying, the next thing readers should watch is whether management’s cash deployment changes as Bitcoin’s trend indicators develop—particularly around the market’s response to the company’s stated bull-case and the preferred stock’s trading relative to its $100 stated value.
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