MicroStrategy Shifts Capital Allocation Strategy Amid BTC Repurchases
Michael Saylor's capital allocation strategy at MicroStrategy continues to evolve. Between September 14 and September 20, the company purchased 950 BTC for $75.7 million, paying an average of $79,670 per Bitcoin. This purchase lifted MicroStrategy's holdings to 846,000 BTC, acquired for about $63.8 billion at an average cost of $75,416.
However, during the same week, MicroStrategy spent $174 million repurchasing 1.77 million STRC preferred shares, more than twice what it spent on Bitcoin. This latest update suggests that MicroStrategy is no longer simply directing every available dollar into BTC. Instead, the company is treating Bitcoin, preferred stock, and cash as parts of one capital-allocation system.
MicroStrategy's strategy has been to buy back STRC when its market price falls below $100, which would reduce future dividend obligations while supporting the security's market price. The company has now spent nearly $490 million on STRC across three reporting periods, with STRC remaining MicroStrategy's largest use of cash.