Strategy has prioritized strengthening its capital base over accelerating Bitcoin purchases, spending approximately three times more on preferred stock repurchases than on Bitcoin acquisitions.
Between September 14 and October 18, Strategy bought back nearly $888 million of its own preferred stock. Over the same period, it acquired an additional 3,466 Bitcoins for about $290 million.
While the buybacks may reduce future dividend obligations, the slower pace of growth in Strategy’s Treasury holdings is likely to continue.
Bitcoin purchases decline as buybacks rise
Weekly Bitcoin purchases fell sharply from 1,665 in late September to just 267 by mid-October, while Strategy’s buyback spending rose to $193.1 million. This shift contributed to a significant decline in the company’s cash reserves, from $1.3 billion to $447.3 million.
Whale accumulation outpaces Strategy
Over roughly a one-month period, large whale buyers accumulated 88,987 Bitcoins, compared with Strategy’s 3,466. The gap shows that large holders are currently adding significantly more Bitcoin than Strategy is directly contributing to overall demand.
Strategy’s ability to resume larger purchases depends increasingly on its preferred-stock financing strategy. The company has already expanded its authorization to spend $3 billion on buybacks and has used approximately $1.84 billion of those funds.
STRC currently trades at around $99.20 per share and offers a 12% annualized dividend. These commitments may limit how much Bitcoin Strategy can purchase going forward if its cash reserves continue to dwindle.
Meanwhile, exchange reserves edged up from 2.67 million to 2.68 million BTC, suggesting some supply remains available. Sustained accumulation will depend on financing flexibility, dividend coverage, and continued institutional demand.
MSTR outperforms Bitcoin as STRC holds near par
Strategy’s market performance shows how investors value its different securities. After Bitcoin recovered on October 21, MSTR rose 7.54% to trade at $153.48, while Bitcoin gained only 2.07%.
The stronger move suggests investors responded more sharply to Bitcoin’s recovery through Strategy’s leveraged equity exposure. Coinbase also rose 3.65%, while BlackRock’s IBIT gained 2.42%, reflecting broader strength across crypto-linked investments.
STRC, by contrast, traded higher by only 0.50% to reach $99.20, remaining very close to its $100 par value. While STRC’s 12% annualized dividend provides attractive support for income-focused investors, this support limits price movements relative to MSTR.
MSTR’s outperformance highlights stronger near-term equity demand but does not prove Strategy can sustainably finance larger Bitcoin purchases.
Final Summary
- Strategy spent $888 million on buybacks versus $291 million on Bitcoin, draining cash reserves.
- Strategy trailed whale accumulation, as future Bitcoin buying depends on liquidity and financing.
