Strategy shifts focus to STRC stock repurchases over Bitcoin buys

Michael Saylor’s Strategy shifted its focus last week, spending significantly more on repurchasing its preferred stock than on Bitcoin (BTC) acquisitions. The company bought 334 BTC for $28.7 million, bringing its total holdings to 848,000 BTC. Simultaneously, Strategy repurchased about 1.77 million shares of its STRC preferred stock for $176.3 million, highlighting a strategic pivot toward preferred securities to fund its Bitcoin treasury strategy.

Strategy also proposed a major change in dividend payments for its preferred stocks. A separate proxy filing seeks shareholder approval to switch from twice-monthly and quarterly dividends to daily payouts for STRC, STRF, STRK, and STRD. The company claims this change would improve liquidity and price stability without altering dividend rates. Shareholders will vote on the proposal on October 28, with potential implementation starting in November for STRC and in January for the others.

Strategy’s Bitcoin holdings grew by just 0.2% in the third quarter, as sales offset most of its purchases. The company acquired 7,218 BTC but sold 5,553 BTC, resulting in a net increase of 1,666 BTC, worth about $143 million at the time of publication. This marked a significant slowdown from the previous quarter’s 11% increase. Despite this, Strategy reported a preliminary $20.91 billion gain on its digital assets for the quarter.

Shares of Strategy’s parent company MSTR rose 2.9% in premarket trading, reaching $164.60, while STRC traded near its $100 stated amount at $99.45. Bitcoin was trading around $86,063 at the time of publication.