Michael Saylor's Strategy Boosts Bitcoin Holdings and Accelerates Preferred Stock Buybacks

Strategy acquired 267 Bitcoins valued at $22.1 million, averaging approximately $82,900 per coin, between October 12 and 18, raising its total Bitcoin holdings to 848,517 BTC, according to a recent filing with the U.S. Securities and Exchange Commission (SEC).

In addition, the company bought back 1.94 million shares of its preferred Stretch (STRC) stock for $193.1 million and raised its buyback authorization for digital credit securities from $2 billion to $3 billion.

These latest transactions continue a pattern of the company allocating more funds toward repurchasing preferred stock than buying Bitcoin, despite Saylor’s anticipation of an upcoming Bitcoin bull market.

For this most recent Bitcoin purchase, Strategy primarily used $22 million obtained from selling 140,872 shares of its common stock (MSTR), while the STRC stock repurchases were financed from existing cash reserves.

During the fourth quarter, the company has spent $459.2 million on buying back STRC shares—over six times the $72.3 million invested in acquiring 851 Bitcoins during the same period.

STRC is a variable-rate preferred stock created to provide regular dividend payments. Strategy has stated its intention to repurchase shares trading below their $100 par value to help maintain the stock price.

The company reported holding a $4.83 billion reserve intended to cover dividends on preferred shares and debt interest payments, along with $447.3 million in separate U.S. dollar cash holdings.

This increased repurchasing of STRC shares comes amid Saylor’s optimistic outlook on Bitcoin’s future, expressed during a discussion at ParaFi Investor Day.

‘We’re moving back into a bull market,’ Saylor declared, highlighting Bitcoin’s rebound above its 200-day simple moving average, a key long-term price trend indicator.

He pointed to restrictive trade, foreign, and monetary policies as challenges impacting Bitcoin’s growth, while emphasizing expanding bank adoption and the tokenization of traditional financial assets as potential catalysts for further gains.

Ahead of Monday’s Nasdaq opening, MSTR shares rose over 2.5% in premarket trading according to Yahoo Finance, after closing Friday down approximately 9.6% at $138.83 per share. STRC shares also increased about 0.8% premarket to $98.45 following a 1.8% decline on Friday.

Strategy’s accelerated preferred stock buybacks alongside continued Bitcoin accumulation demonstrate a strategic balance between capital management and market positioning, reflecting confidence in Bitcoin’s future upside potential. They also underscore the company’s active approach to supporting preferred stock prices while expanding its cryptocurrency holdings.

This activity highlights Strategy's dual focus on strengthening its Bitcoin position and managing shareholder value through preferred stock repurchases, signaling its commitment to long-term growth amid evolving market conditions.

Monitoring these trends is important as they reveal how major institutional holders like Strategy navigate investment and capital allocation strategies in the crypto space.