CryptoSlate
Strategy bought 250 Bitcoin for $21.5 million last week while spending $192.4 million to repurchase its STRC preferred shares, a gap of nearly nine to one in favor of the buyback. The Oct. 5 to Oct. 11 purchase extends a slowdown that saw acquisitions fall from 334 BTC the prior week, lifting total holdings to 848,250 BTC at an average cost of $75,444 per coin, roughly $64 billion in aggregate. The company paid an implied average of about $99.58 per STRC share in its latest repurchase, a discount of less than 0.5% to the $100 stated amount.
Why it matters
STRC buyback spending rose from $176.3 million the prior week to $192.4 million, even as Bitcoin purchases shrank. That inverts the logic of Strategy's July repurchase policy, which called for aggressive buying only at deeper discounts and reduced purchases as STRC approached par. The repurchases do retire shares and eliminate roughly $23.2 million in annualized dividend payments at STRC's 12% rate, but the stated goal is to build enough independent demand for STRC to hold near $100 without continued intervention.
The slowdown also tracks the wider market: Bitcoin has struggled to sustain its recovery after last week's downturn briefly pushed it toward $80,000. Strategy paid an average of $86,194 for its latest batch, above the $75,444 lifetime average across its stack.
Market impact
The buybacks are drawing down unrestricted capital. USD Cash fell $192.9 million to $640.5 million in a week, nearly matching the STRC spend, while the $4.88 billion USD Reserve stays earmarked for preferred dividends and interest and cannot fund repurchases. Remaining buyback authorization of $354.8 million covers about 1.84 weeks at the current pace. Shareholders vote on Oct. 28 on moving STRC and the other preferreds to daily dividends, and Strategy reports Q3 results on Oct. 29, both moments where management will have to defend the shift from Bitcoin accumulation toward supporting its own preferred stock.
Frequently asked questions
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How much Bitcoin did Strategy buy last week?
Strategy acquired 250 BTC for about $21.5 million between Oct. 5 and Oct. 11, down from 334 BTC the previous week. That lifts total holdings to 848,250 BTC at an average price of $75,444 per coin, roughly $64 billion in aggregate.
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Why is Strategy spending more on STRC buybacks than Bitcoin?
It repurchased $192.4 million of STRC preferred shares against $21.5 million of Bitcoin buying. Retiring shares eliminates roughly $23.2 million in annualized dividends at the 12% rate and supports STRC's $100 stated amount.
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How much cash does Strategy have left for buybacks?
As of Oct. 11 it held $640.5 million in USD Cash plus $4.88 billion in the USD Reserve, about $5.52 billion total. USD Cash fell $192.9 million in a week, nearly matching STRC repurchase spend, and the reserve cannot fund buybacks.
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How long can Strategy keep buying back STRC at this pace?
About 1.84 weeks. The company has $354.8 million of remaining authorization under its repurchase program, and the latest weekly pace was $192.4 million, though it can raise additional funds to extend it.
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What is Strategy's Oct. 28 shareholder vote about?
Shareholders will decide on moving Strategy's four US-listed preferred securities to daily dividend payments, with STRC transitioning first. Dividends would accrue daily and pay the next business day, and the first STRC record date would be Nov. 1 if approved.
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