Strategy Shifts Gears, Prioritizing Liquidity Over Aggressive Bitcoin Accumulation

Strategy Inc., formerly known as MicroStrategy, has disclosed its latest move in active capital management. The company has repurchased $132 million worth of its STRC preferred stock and increased its USD reserve by $150 million.

The repurchase is part of a broader $1 billion Digital Credit Securities Repurchase Program authorized in late June 2023. Strategy is systematically buying the shares at a discount to par, lowering future dividend commitments and improving its overall credit profile.

Strategy has paused net Bitcoin purchases in recent weeks, opting instead to treat portions of its holdings as a source of liquidity when market conditions favor it. As of now, the company still holds 840,447 Bitcoin, acquired at an average cost of $75,385 per coin for a total of approximately $63.36 billion.

The actions reflect a maturation in Strategy's approach, shifting from aggressive Bitcoin accumulation to a two-way capital machine: issuing when prices are favorable and retiring claims when they trade at a discount.