Strategy, the largest corporate Bitcoin treasury, paused its regular Bitcoin purchases to conduct a $176 million repurchase of its STRC preferred shares between August 31 and September 7, according to a Securities and Exchange Commission filing.
The company repurchased 1.8 million STRC shares during the period and doubled the size of its Digital Credit Securities Repurchase Program to $2 billion. Strategy's Bitcoin holdings remain at 845,050 BTC, acquired for a total of $63.6 billion at an average price of $75,412 per coin.
The timing marks a shift from Strategy's activity the prior week, when the company made its first Bitcoin purchase since mid-June with a $370 million acquisition.
Funding Strategy Implications
STRC shares traded at $97.70 in premarket activity on Tuesday, representing a 2.3% discount from their $100 par value. The trading discount below par value constrains Strategy's ability to raise capital through preferred share sales and may require the company to increase its dividend rate.
Strategy established a capital framework in June that permits Bitcoin sales to fund dividends and raised the annual dividend rate on STRC preferred stock to 12%.
Rival Treasury Activity
While Strategy paused its Bitcoin buying, other corporate holders accelerated purchases. Strive, the fifth-largest corporate Bitcoin treasury, acquired 1,375 BTC for $109 million at an average cost of $79,281 per coin, bringing its total holdings to 24,531 Bitcoin. France-listed Capital B announced a $25 million Bitcoin acquisition on Monday, its largest purchase in nearly a year.
