Strategy spent $192.4 million repurchasing STRC preferred shares in the week ended October 11, while buying 250 Bitcoin for $21.5 million. The company devoted almost nine times as much capital to supporting the preferred security as it did to expanding its Bitcoin holdings.
The allocation marks a change in emphasis, not an abandonment of Bitcoin. Strategy funded $21.0 million of the purchase with proceeds from selling 125,183 MSTR common shares and used $0.5 million of unrestricted cash. Its holdings rose to 848,250 BTC, acquired for about $64.0 billion at an average cost of $75,444 per coin.
Why STRC absorbed more cash
Strategy repurchased 1,932,145 STRC shares at an implied average price of about $99.58, close to the security's $100 stated amount. Retiring shares reduces the future dividend base. At STRC's current 12% annual rate, the repurchased principal would represent roughly $23 million of annualized dividends if the rate remained unchanged.
The company still had $354.8 million of authorization available for preferred-stock repurchases. That authorization is not a commitment to spend, but it matters because buybacks use capital that could otherwise support Bitcoin purchases or other treasury activity.
Strategy separates its liquidity into two pools. Its $4.88 billion USD Reserve is intended for preferred dividends and debt interest. The company says that reserve is not authorized for STRC repurchases without board action. Its $640.5 million of USD Cash has broader uses, including Bitcoin purchases and capital management.
The source of cash matters
USD Cash fell by $192.9 million from the prior week, almost matching the STRC repurchase amount. That makes the preferred program a direct claim on flexible liquidity unless Strategy raises more capital.
Shareholders will vote on October 28 on a proposal to move the company's U.S.-listed preferred securities to daily dividend payments. If approved, STRC would move first, with a November 1 record date and November 2 payment. Strategy argues daily payments could improve liquidity and reduce reinvestment delays without increasing the annual rate.
The mixed capital allocation deserves a neutral reading for MSTR. Supporting STRC near stated value may lower financing friction and future dividend obligations, but common-stock issuance and preferred buybacks complicate the simple Bitcoin accumulation story. The October 28 vote and October 29 earnings report should clarify whether the latest week was tactical or the start of a more persistent shift.