Michael Saylor’s Strategy refrained from purchasing or selling Bitcoin last week, opting instead to allocate $204.9 million toward repurchasing its STRC preferred stock. According to a Monday filing with the US Securities and Exchange Commission, the company bought back 2.07 million shares between Monday and Friday while reporting no transactions involving Bitcoin or sales through its at-the-market offering program.
The firm’s Bitcoin holdings remained static at 848,517 BTC, which were acquired for a total of $64.02 billion at an average cost of $75,446 per coin. At the time of the filing, Bitcoin was trading near $79,992. Strategy’s US dollar reserve stayed unchanged at $4.83 billion, but its USD cash balance dropped approximately 46% to $242.4 million from $447.3 million due to the share buybacks.
This pause in crypto accumulation occurred as Bitcoin prices declined toward $80,000 after peaking at $84,777 on Wednesday. Since the start of October, Strategy has spent roughly $664 million on STRC repurchases, significantly outpacing the $72.3 million used to acquire 851 BTC during the same period. Following the news, Strategy’s common stock (MSTR) fell 2.2% to $142.80 in premarket activity, while its STRC preferred shares dipped slightly to $99.35.
Strategy’s decision to prioritize preferred stock buybacks over Bitcoin accumulation signals a shift in capital allocation priorities, likely driven by market conditions and internal financial management rather than a change in long-term crypto conviction. By spending nearly ten times more on STRC repurchases than on new Bitcoin acquisitions since early October, the company appears focused on stabilizing or enhancing the value of its preferred equity instruments amidst volatile cryptocurrency markets.
This move highlights the operational risks associated with maintaining large digital asset treasuries when underlying asset prices fluctuate. While the Bitcoin holdings remain substantial, the reduction in liquid cash reserves could limit flexibility for future purchases if market opportunities arise. Investors should monitor whether this strategy continues to support the premium valuation of MSTR relative to its net asset value, particularly as the gap between Bitcoin's trading price and Strategy's average acquisition cost narrows.
