Strategy favors STRC buybacks over Bitcoin purchases in latest spending shift

Michael Saylor’s Strategy shifted its spending priorities last week, allocating significantly more funds to stock buybacks than Bitcoin purchases. The company bought 334 Bitcoin (BTC) for $28.7 million, increasing its holdings to 848,000 BTC. Simultaneously, Strategy repurchased 1.77 million shares of its preferred stock, STRC, for $176.3 million, which is over six times its weekly Bitcoin budget.

The capital allocation aligns with Strategy’s plan to seek shareholder approval for an overhaul of dividend payments across its preferred stocks. This move underscores the growing role of preferred securities in funding and managing its Bitcoin treasury strategy.

Strategy filed a proxy seeking approval to pay regular dividends on STRC, STRF, STRK, and STRD every business day, replacing STRC’s twice-monthly schedule and quarterly payments on the other three. The company stated that the proposal would not change dividend rates or overall payment obligations but could improve liquidity and price stability.

Shareholders will vote on the proposal at a special meeting on October 28. If approved, STRC’s daily schedule would start in November, while the others would follow in January.