Timeline
- 7.0
Strategy opts for bigger spending on STRC buybacks over BTC purchases
Strategy bought 334 Bitcoin for $28.7 million last week while spending $176.3 million to repurchase roughly 1.77 million shares of its STRC preferred stock, according to a Monday 8-K filing with the SEC, bringing its Bitcoin holdings to exactly 848,000 BTC. In a separate proxy filing the same day, the company asked shareholders to approve paying regular dividends on its STRC, STRF, STRK and STRD preferred shares every business day, replacing STRC's twice-monthly schedule and quarterly payments on the other three. The filing shows a capital-allocation shift at the largest corporate Bitcoin holder, where weekly spending on preferred-stock buybacks was more than six times its Bitcoin purchase budget. Strategy said the dividend-timing proposal would not change dividend rates or its overall payment obligations, but could shorten reinvestment delays and improve liquidity and price stability. Shareholders will vote on the dividend proposal at a special meeting on Oct. 28; if approved, STRC's daily schedule would begin in November and STRF, STRK and STRD would follow in January. Strategy's Bitcoin holdings rose just 0.2% in the third quarter, from 846,000 BTC at the end of June to 847,666 BTC at the end of September, as it acquired 7,218 BTC and sold 5,553 BTC during the period, and it spent about $1.38 billion repurchasing STRC over the quarter.
- 7.5
Strategy has burned through 64% of its STRC rescue fund
Strategy has spent $1.28 billion, or 64%, of its $2 billion Digital Credit Securities Repurchase Program on buying back STRC, leaving less than $724 million as of Monday's filing. STRC, which Strategy has said it wants to trade near its $100 stated amount, opened for trading at $99.18. The fund meant to keep STRC near $100 is nearly depleted, while the shares have traded below $99 on the majority of trading days over the past year. The buybacks are funded largely by dilution of MSTR common stock, which ranks junior to STRC. Strategy spent $151.7 million repurchasing STRC last week at an average price of $98.86 per share, up from an $86.52 average in late July, and has bought back 13.3 million STRC shares, roughly one in eight outstanding. Although the program technically allows repurchases of STRF, STRD and STRK, the source reports it has only ever repurchased STRC.