Strategy Redirects $139 Million From Bitcoin to STRC Buybacks

Strategy spent $139.3 million retiring its own preferred stock instead of adding to its bitcoin hoard, according to a September 14 Form 8-K covering the week ended September 13. The company repurchased 1,420,467 shares of STRC, its variable-rate perpetual preferred stock, at an implied average price of roughly $98.07 a share.

The transaction marked a slower pace than the previous week, when Strategy bought back $176.3 million of STRC. Even so, the allocation shows where management’s immediate priority lies: supporting the trading price and capital structure of its newer “digital credit” instrument while bitcoin purchases remain on pause.

Strategy’s bitcoin balance stayed fixed at 845,050 coins for a second straight week. At the average acquisition cost disclosed by the company, the stack represents about $63.7 billion of cumulative investment. The holdings are worth roughly $65.7 billion at recent market prices, according to The Block, leaving the company with a modest unrealized gain but no fresh accumulation to boost its bitcoin-per-share metric.

The buyback is not simply a market-support gesture. When Strategy acquires STRC below its $100 stated amount, it retires preferred equity at a discount, reducing the amount of stock outstanding and the future dividend burden attached to those shares. Strategy has said its broader objective is for STRC to trade near $99 to $100, with repurchases, dividend-rate adjustments and liquidity reserves working in tandem.

The company funded the latest repurchases from its USD Cash balance, which stood at about $1.3 billion on September 14, while its separate USD Reserve was approximately $5.1 billion. That distinction matters. The reserve is intended primarily to cover preferred dividends and debt interest, whereas USD Cash can support broader corporate uses, including bitcoin purchases and stock buybacks.

For MSTR investors, the pause creates a sharper test of Strategy’s financing model. The company has historically used equity and preferred issuance to acquire more bitcoin, but the latest filings show capital being recycled inside the structure instead. The next question is whether STRC can approach par without consuming cash that might otherwise fund the next bitcoin purchase.