Strategy put more money into buying back STRC preferred than into bitcoin last week
Strategy spent $151.7 million retiring STRC preferred in the week to September 27, more than the $142.7 million it paid for 1,665 bitcoin. MSTR stock sales paid for most of both, so common shareholders are now paying to shrink the company's preferred stock.
The Investor · Invest desk
What happened
- Strategy raised $246.2 million net by selling 1.47 million MSTR shares through its at-the-market program, and $103.5 million of that went to the STRC buyback.
- The remaining $48.1 million of the buyback came from the USD Cash pot, which fell to $1 billion from $1.05 billion over the week.
- Holdings reached a record 847,666 BTC, acquired for a total of $63.95 billion at an average cost of $75,437 a coin.
- The week before, Strategy had bought 950 BTC for $75.7 million, ending a two-week pause in purchases.
Why it matters
- What it costs cost About 42 cents of every net dollar raised from MSTR sales last week went to retiring STRC, so part of the week's dilution of common holders bought no bitcoin at all.
- What it limits constraint At last week's $151.7 million pace, the $723.5 million left in the repurchase program lasts under five weeks, so continued support for STRC needs a new authorization or smaller weekly buys.
- What it sets up precedent A second straight week of pairing bitcoin buys with STRC repurchases, after more than 1.77 million shares the week before, makes preferred buybacks a recurring use of ATM money that competes with bitcoin for each dollar raised.
Next story · Invest · 4d ago
Strategy's $176.3 million STRC buyback removes about $21 million a year of 12% dividendsConfirmed2 publishers
Dividing $151.7 million by 1.53 million shares puts Strategy's average STRC repurchase price at about $99.15 [19]. The company says it is buying because the preferred trades below its stated amount [16]. The common went the other way: the 1.47 million MSTR shares sold in the same week fetched roughly $167.50 each, net [20]. Each STRC share retired is one fewer dividend for the $5.02 billion USD Reserve to cover, and the reserve paid out $22.1 million of preferred dividends last week [4].
Strategy sold no STRF, STRC, STRK or STRD through its ATM programs during the week, while keeping $17.51 billion of STRC capacity available on them [14]. Strategy can issue or retire the same security depending on where it trades against its stated amount [14][16].
The move away from pure accumulation began before this week. Strategy sold 6,948 BTC between May and August while it built dollar reserves [17]. Last month it created a separate USD Cash pot that can fund bitcoin buys, reserve top-ups and other capital management [7]. It also proposed daily dividend accrual on its preferred stock last week, to dampen volatility [12].
If STRC climbs back to its stated amount, the buybacks stop, issuance from that STRC capacity resumes, and last week was price support for a funding tool. A second version has the repurchase authorization running dry without renewal, a short campaign that changes little. The third turns on Strategy's capital framework, which lets it sell up to $1.25 billion of bitcoin to fund the reserve, dividends, interest and repurchases of MSTR or preferred [18]. In that version, Strategy sells bitcoin to pay for STRC buybacks.
On last week's evidence, I think Strategy is managing its capital structure as much as it is buying bitcoin: it spent $9 million more retiring preferred than buying coins [24]. The counter-case is in the same filing. Strategy bought bitcoin for a second straight week [10], its holdings now sit 303 coins above the June 22 record tracked by BitcoinTreasuries [23], and it paid $85,681 a coin, about 13.6% above the average cost of everything it owns [25]. That view is wrong if Strategy resumes selling STRC through its ATM within weeks at or near the stated amount. Then the buyback was a trade around the stated amount, and bitcoin still gets most of the common-stock money.
What to watch
- The shareholder vote on daily dividend accrual for Strategy's preferred stock, the company's other tool for damping STRC's price swings.
- The USD Cash balance in next Monday's 8-K, since another draw near $48 million would take the pot below $1 billion.
- How fast Strategy draws on its $18.84 billion of MSTR ATM capacity now that common issuance funds both bitcoin and the preferred buyback.
Information, not investment advice. This story is general information about companies and markets, drawn from cited reporting. It is not a recommendation to buy, sell or hold any security; check the cited sources before acting.
Clarity's read
What the record supports and how the coverage leans. The claims behind it follow.
Reality
- Evidence80
- Adoption
- Not scored
- Hype gap+5
- Incentives60
- Confidence78
Perspective Coverage
3 publishers- Builder
- Builder 5%
- Operator
- Operator 28%
- Investor
- Investor 67%
Claim ledger
Ranked by verification strength, evidence, and original report placement.
- [1]
Strategy bought 1,665 BTC for $142.7 million between September 21 and September 27 at an average price of $85,681 per coin, according to a Monday filing with the SEC.
- [2]
Strategy repurchased 1.53 million shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) for $151.7 million during the same week.
- [3]
Strategy used $48.1 million of USD Cash for STRC repurchases, and its USD Cash balance fell to $1 billion from $1.05 billion week over week.
- [4]
Strategy's USD Reserve, maintained to cover preferred stock dividends and debt interest, declined to $5.02 billion from $5.04 billion after $22.1 million in dividend payments.
- [5]
Strategy's total holdings stand at 847,666 BTC, acquired for $63.95 billion at an average price of $75,437 per bitcoin, a record for the company.
- [6]
Strategy's previous record was 847,363 BTC, reported June 22, per BitcoinTreasuries.
- [7]
USD Cash is a separate pot established last month that can be used for bitcoin purchases, increasing the USD Reserve and other capital-management purposes.
- [8]
Strategy bought 950 BTC for $75.7 million the previous week after a two-week pause.
- [9]
In the previous week Strategy reported purchasing 950 BTC and repurchasing over 1.77 million STRC shares.
- [10]
The latest weekly disclosure shows Strategy buying rather than selling bitcoin for a second week.
- [11]
Strategy sold 1.47 million MSTR shares through its at-the-market offering program during the week for $246.2 million in net proceeds; $142.7 million went to bitcoin purchases and $103.5 million to repurchasing STRC preferred stock.
- [12]
Last week Strategy proposed daily dividend accrual on its preferred stock, including STRC, in a bid to dampen volatility.
- [13]
Strategy seeks shareholder approval for daily preferred stock dividends.
- [14]
Strategy reported no sales of STRF, STRC, STRK or STRD through its ATM programs during the week; remaining capacity included $18.84 billion of MSTR stock, $17.51 billion of STRC, $4.01 billion of STRD, $2.1 billion of STRK and $1.62 billion of STRF.
- [15]
Strategy's latest filing says $723.5 million remains available under its digital credit securities repurchase program.
- [16]
Strategy has been buying back STRC as it seeks to take advantage of the preferred stock trading below its stated amount.
- [17]
Strategy spent much of the summer selling bitcoin and building up its dollar reserves, selling 6,948 BTC between May and August before beginning to rebuild its holdings.
- [18]
Strategy has said its capital framework allows it to sell up to $1.25 billion worth of bitcoin to fund its USD Reserve, preferred-stock dividends and interest expenses, as well as repurchases of MSTR or its preferred securities.
- [19]
Strategy's average STRC repurchase price was about $99.15 per share.
- [20]
MSTR shares sold through the ATM fetched roughly $167.50 each in net proceeds.
- [21]
About 42% of the week's net MSTR ATM proceeds went to STRC repurchases.
- [22]
At the week's repurchase pace, the remaining authorization lasts a little under five weeks.
- [23]
Strategy's holdings are 303 BTC above the June 22 record.
- [24]
Strategy spent $9 million more on STRC repurchases than on bitcoin during the week.
- [25]
The week's purchase price of $85,681 per bitcoin was about 13.6% above Strategy's average cost of $75,437.
Sources
3 independent publishers whose own reporting we read for this story.
- cointelegraph.comStrategy buys 1,665 Bitcoin for $143M as BTC stack hits 847,666
1 article · September 28, 2026
- cryptobriefing.comStrategy buys 1,665 Bitcoin for $143 million as holdings near 848,000 BTC
2 articles · September 28, 2026
- decrypt.coStrategy Sets New BTC Holdings Record After $143M Bitcoin Purchase
1 article · September 28, 2026
Topics and entities
Topics
- Preferred stock buybacks
- At-the-market offerings
- Corporate Bitcoin treasuries