MicroStrategy's Bitcoin Buys Dip as Stock Buybacks Surge

MicroStrategy, now operating as Strategy, made a modest Bitcoin purchase last week, acquiring just 334 BTC for $28.7 million. This amount is significantly smaller than its previous weekly buys, which averaged around 1,665 BTC. The purchase brings the company's total Bitcoin holdings to 848,000 BTC, as disclosed in a recent SEC filing.

Interestingly, Strategy allocated six times more capital to buying back its own preferred stock, spending $176.3 million on repurchasing about 1.77 million shares of its preferred stock, called Stretch (STRC). This stock offers a 12% annual dividend, and Strategy has committed to maintaining this rate until the stock stabilizes near its $100 issue price. The majority of the funds for these buybacks came from the company's USD Cash reserve, with only $13 million of the Bitcoin purchase funded from this pool.

The same filing revealed that Strategy recorded a $20.91 billion gain on its Bitcoin holdings in the third quarter of 2026. This substantial gain allowed the company to reverse a $4.12 billion tax asset tied to earlier losses. At the current Bitcoin price of approximately $86,138, Strategy's Bitcoin stash is valued at around $72.4 billion, with the company having paid an average of $75,441 per coin. The company also holds a $4.88 billion USD Reserve for dividends and interest, plus $833.4 million in USD Cash.

Smaller rival Strive (ASST) disclosed a larger Bitcoin purchase the same week, acquiring 2,000 BTC between September 28 and October 2 at an average price of $84,422 each, totaling about $169 million. Strive's holdings now stand at 29,462 BTC. Peter Schiff, a gold advocate, criticized Strategy's shift in focus, arguing that the company has lost its ability to raise funds for further Bitcoin purchases due to the halt in STRC sales.