Strategy boosts STRC buybacks as Bitcoin purchases trail capital deployment

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STRC buybacks vs Bitcoin

Highlights

Strategy repurchases $208.2 million of STRC preferred shares and spends $65.5 million buying 811 Bitcoin at an average price of $80,846 last week.
Strategy raises $164 million via sale of 1.18 million MSTR shares, directing $65.5 million to Bitcoin acquisitions and $98.5 million to USD cash reserves.
STRC preferred stock rises 0.1% in pre-market to $99.22, 0.8% below Strategy's $100 target, limiting new share issuance as Metaplanet executes a $160 million buyback.

Capital allocation and filing details

According to Cointelegraph, as reported by the company's Monday 8-K filing with the Securities and Exchange Commission, Strategy repurchases $208.2 million of STRC preferred shares and spends about $65.5 million to acquire 811 Bitcoin at an average price of $80,846 last week.

The filing shows Strategy sells about 1.18 million MSTR shares for net proceeds of $164 million. Of that amount, about $65.5 million funds the Bitcoin purchase, while the remaining $98.5 million goes to the company's U.S. dollar cash balance. As of Sunday, the company holds $132.7 million in USD Cash and $4.79 billion in a separate U.S. dollar reserve.

The latest activity follows roughly $664 million in STRC buybacks between Oct. 1 and Oct. 25, compared with about $72 million in Bitcoin acquisitions over the same period. The figures indicate the company currently prioritizes support for its preferred stock alongside its ongoing Bitcoin treasury strategy.

Funding constraints and wider treasury market moves

STRC preferred stock rises 0.1% in pre-market trading on Monday to $99.22, according to Yahoo Finance, leaving the shares about 0.8% below the company's $100 target price. Strategy's policy is not to issue new STRC shares below that level, reducing one potential funding source while the stock remains under target.

The buyback activity also comes as other Bitcoin treasury companies take similar balance-sheet actions. Japan's Metaplanet reports on Monday that it spends about 25.27 billion yen, or $160 million, to repurchase 96.45 million common shares between Oct. 14 and Saturday, representing about 7.1% of its issued shares.

In our earlier article on rising long-term U.S. Treasury yields and the widening federal deficit, we noted how higher borrowing costs are tightening financial conditions across the economy, lifting mortgage rates and increasing the government’s interest burden. We also highlighted that heavy issuance needs and strong demand for capital—particularly tied to large-scale AI infrastructure investment—are intensifying competition for funding and keeping pressure on yields.

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