Strategy’s board approved a $1 billion increase to the company’s preferred stock buyback program, bringing the total it can spend to $3 billion, the bitcoin treasury company disclosed in a Form 8-K on Monday. The move came after Strategy used $193.1 million to repurchase 1,938,780 shares of its STRC preferred stock between Oct. 12 and Oct. 18.
In the same week, the company bought 267 BTC for $22.1 million, at an average price of $82,900 a coin, fees included. That puts its stack at 848,517 BTC, acquired for a combined $64.02 billion, or $75,446 per coin on average. The STRC repurchases cost almost nine times what Strategy put into bitcoin over those seven days.
Executive Chairman Michael Saylor, recapping the week in a post on X, put Strategy’s dollar holdings at $5.3 billion.
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More Room for Buybacks
The new $3 billion ceiling counts every repurchase already made under what Strategy calls its digital credit securities repurchase program. With the increase, $1.16 billion was left to spend as of Oct. 18, per the filing. A week earlier, the company reported that $354.8 million remained under the old $2 billion limit. The board had already doubled the program to $2 billion from $1 billion.
STRC was the only security Strategy bought back last week. A separate program for MSTR common stock still has $1.0 billion available, and the company repurchased no MSTR shares.
How It Paid
The bitcoin came out of $22.0 million in net proceeds from selling 140,872 MSTR shares through Strategy’s at-the-market program, plus about $100,000 of cash. The company sold none of its four preferred stocks through that program, months after it halted the STRC sales that had funded earlier bitcoin purchases.
The STRC buyback was paid entirely from what Strategy labels USD Cash, which dropped to $447.3 million as of Oct. 18 from $640.5 million a week before. Strategy also drew $45.5 million from its separate USD Reserve, which the filing says is meant to support preferred dividends and debt interest, to pay preferred dividends. That reserve stood at $4.83 billion, down from $4.88 billion.
Strategy’s common stockholders are set to vote on Oct. 28 on whether STRC and its three other preferred stocks should pay dividends daily.
Related Listen: Why Lyn Alden Says Strategy Let Its Dollar Reserve Slip Too Far
The post Strategy Raises Its Preferred Buyback Cap to $3 Billion After Another $193 Million STRC Week appeared first on Unchained.
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