Strategy skips Bitcoin purchase to repurchase $176 million of preferred STRC shares
Michael Saylor's Strategy, the largest corporate Bitcoin treasury, skipped its weekly BTC acquisition between August 31 and September 7, repurchasing 1.8 million of its preferred STRC shares for $176.3 million instead. The company also doubled its Digital Credit Securities Repurchase Program from $1 billion to $2 billion. Strategy currently holds 845,050 Bitcoins purchased for a total of $63.6 billion at an average price of $75,412 per coin.
Share Repurchase and Program Expansion
According to a filing submitted to the US Securities and Exchange Commission on Tuesday, Strategy repurchased 1.8 million preferred STRC shares for a total of $176.3 million between August 31 and September 7. Additionally, the company doubled the size of its Digital Credit Securities Repurchase Program from $1 billion to $2 billion.
STRC is a core vehicle used by Strategy to fund its Bitcoin accumulation. Trading below par value limits the company's ability to raise capital through further sales, potentially necessitating an increase in its dividend rate.
Bitcoin Holdings and Dividend Policy
Strategy’s Bitcoin holdings remained steady at 845,050 BTC without new purchases in the reported period. These coins were acquired for a total of $63.6 billion at an average price of $75,412 each.
On June 29, Strategy announced a capital framework permitting Bitcoin sales to fund dividends, and increased the annual dividend rate on STRC preferred stock to 12%.
Market Reaction to STRC and MSTR Shares
On Tuesday premarket, STRC preferred shares traded relatively flat at $97.70, representing a 2.3% discount to the intended $100 par value. However, the company’s Nasdaq-traded common shares (MSTR) fell more than 3% according to Yahoo Finance data at the last check.
Comparison with Other Corporate Bitcoin Accumulators
While Strategy paused Bitcoin purchases last week, other companies increased their holdings. Strive, the fifth-largest corporate Bitcoin treasury, acquired 1,375 BTC for $109 million at an average price of $79,281 per BTC, raising its total holdings to 24,531 BTC, CEO Matt Cole disclosed Monday.
Additionally, France-listed Bitcoin treasury Capital B bought $25 million worth of Bitcoin—its largest purchase in almost a year—surpassing H100 Group among publicly traded BTC holders.
Why it matters
This news highlights the strategic flexibility of Strategy, the largest corporate Bitcoin holder, which paused BTC acquisitions to repurchase $176 million of its preferred shares. The move underscores the need to maintain financial stability and manage funding sources, especially as STRC shares trade below par value. By doubling the repurchase program and raising dividend rates, Strategy aims to balance investor interests with capital requirements for future cryptocurrency acquisitions. Meanwhile, competing firms like Strive and Capital B continue active Bitcoin accumulation, illustrating a dynamic and varied institutional approach to the market.
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