Strategy (formerly MicroStrategy) purchased 334 Bitcoin for $28.7 million between October 1 and 4, bringing its total holdings to 848,000 BTC. The acquisition, disclosed in an October 5 SEC filing, marked the company's smallest positive Bitcoin purchase of 2026 at an average price of $85,838.80 per coin.
The modest Bitcoin addition contrasts with Strategy's parallel capital allocation strategy. The company spent $176.3 million repurchasing approximately 1.77 million shares of STRC, its variable-rate perpetual preferred stock, during the same period—more than six times the amount deployed toward Bitcoin.
Strategy's total spending on STRC repurchases has reached approximately $1.45 billion under its preferred-stock buyback authorization, leaving $547.2 million available under a $2 billion program the company doubled in September.
Preferred Stock Trading Below Target
Despite the company's intervention efforts, STRC has remained below its $100 stated value for nearly 100 consecutive trading sessions. The security last closed at $100 in mid-May. Strategy's investor materials indicate an objective for STRC to trade between $99 and $100 over time.
To address the persistent discount, Strategy has implemented several measures, including raising STRC's annual dividend rate to 12 percent, beginning systematic share repurchases, and shifting dividend payments from monthly to semi-monthly earlier this year.
Proposed Dividend Structure Change
In a proxy filing, Strategy is seeking shareholder approval to move to daily dividend accruals across its four US-listed preferred securities. Under the proposal, STRC dividends would accrue on every calendar day and be payable on the next business day. The annual dividend rate would remain unchanged.
Strategy argues that shortening the interval between earning and receiving dividends could reduce price fluctuations, improve liquidity, and increase demand for the securities. The company contends the change is specifically intended to support STRC trading at or near $100.
Shareholders of record as of September 25 will vote on the amendment on October 28. If approved, STRC would begin accruing dividends daily on November 1.
Bitcoin Holdings Generate Unrealized Gains
Strategy's existing Bitcoin position appreciated significantly during the third quarter. Bitcoin gained approximately 43 percent during that period, lifting the carrying value of the company's holdings to $70.82 billion as of September 30. Strategy estimated a $20.91 billion digital-asset gain for the quarter under fair-value accounting, though this represents an unrealized gain rather than realized trading profit.
Strategy's preferred-stock funding model now intersects directly with its Bitcoin acquisition strategy. The company has indicated that improving liquidity and demand across its preferred securities could make future preferred-equity issuance more efficient, potentially expanding capital available for Bitcoin purchases.
