Strategy Shifts Focus from Bitcoin to Self-Stock Buybacks

Strategy, the world's largest corporate holder of Bitcoin, has not added to its Bitcoin holdings for two consecutive weeks and instead spent over $139.3 million (approximately KRW 187.8 billion) to repurchase its preferred stock STRC.

According to filings with Cryptopolitan and the U.S. Securities and Exchange Commission (SEC), Strategy purchased 1,424,670 shares of its variable-rate perpetual preferred stock STRC for a total of $139.3 million between August 8 and 13. The company did not buy or sell Bitcoin during that period nor issue common shares through an at-the-market (ATM) program.

As a result, the company's Bitcoin holdings remain steady at 845,050 BTC, with acquisition costs of approximately $6.37 billion (KRW 8.5 trillion) and an average purchase price of about $75,412 per BTC (KRW 11.69 million). Strategy had previously bought 4,603 BTC for roughly $369.7 million (KRW 498.5 billion) between August 24-30, marking its first Bitcoin purchase in about 10 weeks.

Instead, the company has focused capital on STRC repurchases. Strategy had also repurchased 1,818,850 shares of STRC for $176.3 million (KRW 237.7 billion) the previous week. The board then increased the limit for its digital credit securities repurchase program from $1 billion to $2 billion, leaving approximately $1.05 billion available for further STRC repurchases.

The funds used for these repurchases came from the company's USD Cash reserves, which stood at $1.3 billion (KRW 17.5 billion) as of August 13. Separate USD Reserve accounts totaling $5.1 billion (KRW 68.77 billion) are designated for dividend payments and debt interest.

STRC is a perpetual preferred stock with higher priority than MSTR common shares, which Strategy markets as part of its 'digital credit' product line. However, STRC holders cannot directly claim the company's Bitcoin holdings. With Strategy pausing additional Bitcoin purchases to focus on preferred stock management, market attention has turned toward potential shifts in its capital allocation strategy.