MicroStrategy Pauses Bitcoin Buys, Repurchases STRC Shares Worth $139M

MicroStrategy's corporate strategy has taken an unexpected turn as it pauses its aggressive Bitcoin accumulation. The company, now known as Strategy, did not make any new Bitcoin purchases last week, leaving its total holdings at 845,050 BTC unchanged.

In a significant shift from its previous approach, Strategy deployed $139 million to repurchase its STRC preferred shares instead of adding to its Bitcoin treasury. This move suggests the company is prioritizing capital management and reducing excess fiat reserves for now.

Strategy currently holds approximately $6.4 billion in dollar-denominated assets with a duration of 3.9 years. By using some of that liquidity for STRC share repurchases, the company aims to optimize its capital structure and manage financing costs.

Saylor provided calculations based on Bitcoin trading at $77,266, assuming an annual return of 10% and volatility of 40%. Under those conditions, STRC carries a credit spread of 57 basis points. This structure is designed to provide investors with variable yield generated through Strategy's treasury operations while separating credit returns from Bitcoin's direct price volatility.

Strive Inc., another corporate Bitcoin buyer, took the opposite approach by issuing additional SATA preferred shares and using the proceeds to acquire 469 BTC for $36.6 million. At current prices, Strive's corporate holdings are now worth roughly $1.93 billion, with an amplification ratio of 53.5%.