Key Takeaways:
- Strategy repurchased $25 million of its STRC preferred stock last week
- The company raised $544.5 million by selling 5.4 million Class A shares
- Bitcoin holdings stayed flat at 843,775 BTC for the third straight week
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Strategy buys back $25M in preferred stock, skips Bitcoin for third week
Strategy repurchased $25 million of its preferred stock and raised $544.5 million through an equity sale last week, while extending its Bitcoin buying pause to a third consecutive week.
The transactions were disclosed in an SEC Form 8-K filing Monday. Between July 20 and July 26, the company bought back 288,930 shares of its 9.0% Series A Perpetual Stretch Preferred Stock (STRC) for $25 million. Separately, it sold 5,429,160 shares of Class A common stock through its at-the-market equity program, generating $544.5 million in net proceeds.
Strategy's Bitcoin holdings remained unchanged at 843,775 BTC, acquired at an average price of $75,476 per token for a total cost of $63.69 billion. The company's cash reserves grew to $3.75 billion as of July 26, up from $3.225 billion the prior week, according to the filing. Bitcoin traded near $64,971 at the time of the filing, below Strategy's average acquisition cost.
MSTR shares rose 2.63 percent to $94.08 in early trading Monday, while STRC preferred stock gained 2.3 percent to $88.90. The buyback marks the first time Strategy has repurchased its STRC product, a preferred security that pays a 9 percent dividend and offers investors Bitcoin exposure through a yield-bearing instrument.
The three-week pause in Bitcoin accumulation signals a shift in capital allocation toward balance-sheet management rather than aggressive BTC expansion, which has defined Strategy's corporate narrative since 2020. The company now holds $3.75 billion in cash earmarked for preferred dividend distributions and debt service. Executive Chairman Michael Saylor posted "We're gonna need another color" on X Sunday, which some market participants interpreted as a hint at additional preferred stock initiatives. Strategy's next catalyst will be its weekly capital markets update, where investors will watch for any resumption of Bitcoin purchases or further preferred stock activity.
This article is for informational purposes only and does not constitute investment advice.
[1] Strategy (MSTR) Stock Climbs 2.6% After $25M Preferred Stock Buyback, Skips Bitcoin Purchase[2] Strategy Skips Bitcoin Again, Buys Back $25M of STRC Stock[3] Strategy sells MSTR shares, buys back $25M in STRC preferred stock[4] Strategy buys preferred stock in past week instead of bitcoin, hit to business model signaled
