Strategy Skips Another Bitcoin Purchase, Focuses on STRC Repurchases

Strategy, founded by Michael Saylor, has once again chosen not to buy more BTC, instead opting to spend $139.3 million on its own preferred stock, STRC. Between September 8 and 13, the company repurchased 1,420,467 STRC shares while leaving its 845,050 BTC holdings untouched.

This marks the second week in a row that Strategy has prioritized STRC over buying more BTC. In the previous reporting period, the company spent $176.3 million on STRC repurchases and doubled its Digital Credit Securities Repurchase Program from $1 billion to $2 billion.

Strategy's Bitcoin treasury remains one of the largest corporate holdings, representing 4% of BTC's total supply. However, the company's approach has shifted towards a more nuanced capital-allocation strategy, allowing for BTC sales in certain situations to rebuild reserves or fund preferred dividends.

The distinction between Strategy's reserve and cash is important, with the reserve intended primarily for covering preferred-stock dividends and debt interest. The $5.10 billion USD Reserve has grown substantially since Coinpaper's previous examination of whether Strategy was building cash before its next BTC purchase.