Strategy allocated $208.2 million to repurchase its STRC perpetual preferred stock last week while adding 811 Bitcoin for roughly $65.5 million, extending a capital-allocation model that combines Bitcoin accumulation with support for its preferred-share market.
The company paid an average of $80,846 per Bitcoin, according to a Monday filing with the US Securities and Exchange Commission. Strategy funded the purchase and a $98.5 million increase in its USD Cash balance through sales of about 1.18 million MSTR common shares, which generated $164 million in net proceeds.
The transaction shows Strategy directing proceeds from common-stock issuance into both its Bitcoin treasury and liquid dollar holdings, rather than deploying all new capital toward cryptocurrency. Of the $164 million raised, about 40% went to the Bitcoin purchase, while the remaining 60% was placed in USD Cash.
Strategy reported holding 849,327 Bitcoin as of Sunday, acquired at an average cost of $75,451 per coin. The latest acquisition is modest relative to its overall position, but comes alongside a substantially larger repurchase of STRC, the company's preferred stock designed to provide regular dividend income.
STRC buybacks outpace latest Bitcoin purchase
The $208.2 million spent on STRC repurchases was more than three times the amount assigned to Bitcoin during the week. Strategy has stated that it does not issue new STRC shares below $100, a policy intended to limit issuance at prices below the security's stated target level.
STRC traded at $99.22 in pre-market trading on Monday, according to Yahoo Finance, up 0.1% but about 0.8% below $100. Repurchases at that level can reduce the number of shares outstanding and may help keep the preferred stock closer to the company's intended pricing benchmark.
Between Oct. 1 and Oct. 25, Strategy spent approximately $664 million repurchasing STRC and about $72 million purchasing Bitcoin, according to the SEC filing. The latest week therefore continues a pattern in which management has placed more capital behind the preferred stock than new Bitcoin acquisitions.
That distinction matters for holders of Strategy's various securities. MSTR common-stock sales remain a source of funds for the company, while the proceeds are being divided among Bitcoin purchases, cash reserves and the buyback of a separate preferred instrument. The arrangement gives Strategy flexibility to respond to financing conditions without tying every capital raise directly to Bitcoin buying.
Cash balances provide a larger liquidity buffer
Strategy ended Sunday with $132.7 million in USD Cash and a separate US dollar reserve of $4.79 billion, according to the filing. The disclosure did not combine those two balances, presenting them as separate pools alongside the company's Bitcoin holdings and preferred-share activity.
The addition of $98.5 million to USD Cash is notable beside the company's decision to buy Bitcoin at an average price above $80,000. Maintaining dollar liquidity gives Strategy funds for dividends, operating needs, debt-related obligations and securities repurchases without requiring an immediate sale of Bitcoin.
Strategy's financing structure has attracted close attention because its Bitcoin balance is unusually large for a listed operating company. Yet its latest filing suggests a more layered approach than a simple recurring purchase program. Management is simultaneously managing preferred-share pricing, common-stock issuance and liquidity reserves, each of which can affect how much money reaches Bitcoin in a given week.
STRC has also been marketed with a 12% annual dividend rate, making its trading level and outstanding share count relevant to Strategy's ongoing cash commitments. Buying back shares can reduce future dividend obligations, though it also consumes capital that could otherwise be retained in cash or used to purchase Bitcoin.
Metaplanet also turns to share repurchases
In a separate Monday disclosure, Japan's Metaplanet reported repurchasing 96.45 million common shares between Oct. 14 and Saturday for approximately 25.27 billion yen, or about $160 million. The shares represented roughly 7.1% of the company's issued stock, according to Metaplanet.
Metaplanet also said it had unlocked an additional $50.7 million for future asset purchases after repaying older bonds. The company has adopted a Bitcoin-focused treasury strategy similar to Strategy's, although its balance sheet and scale remain considerably smaller.
The two companies' buybacks reflect a shared concern with the market value of their listed securities as well as the size of their Bitcoin treasuries. Repurchasing shares can increase the relative ownership stake of remaining shareholders and may be attractive to management when it believes the market price does not reflect corporate assets or future plans.
Neither filing establishes that the repurchases will influence Bitcoin's market price. Strategy's purchase of 811 Bitcoin is small beside global Bitcoin trading volumes, while Metaplanet's announcement concerns its own common shares rather than a new disclosed Bitcoin acquisition. The more immediate effect is on each company's capital structure: Strategy has paired modest Bitcoin buying with large STRC repurchases, while Metaplanet has reduced its outstanding common-share base and expanded available funds for later deployment.
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