Strategy Spends More On Preferred Buybacks Than Bitcoin For Third Week

Strategy spent more buying back its Stretch preferred shares than acquiring Bitcoin (BTC) for a third consecutive week, according to its 9th November filing. For 2nd to 8th November, it reported $188.3 million of STRC repurchases and $81.9 million of bitcoin purchases.

The company raised $283.8 million after commissions by selling about 2.05 million common shares during the week. It allocated $188.3 million of those proceeds to the preferred buyback, $81.9 million to bitcoin and $13.6 million to its general cash balance. That puts the larger share of the week's new common-equity funding into repurchasing another class of its own stock.

The bitcoin purchase added 1,036 BTC at an average $79,012 each, including fees and expenses. Strategy reported 850,364 BTC at 8th November, acquired for $64.16 billion at an average $75,456. Those are historical purchase costs rather than a current valuation.

Three weeks of repurchases

The pattern began before the latest filing. In the week to 25th October, Strategy bought back $204.9 million of STRC while reporting no bitcoin purchases or sales. In the week to 1st November, it repurchased another $208.2 million of STRC and bought $65.5 million of bitcoin.

Across those three weeks, the filings add up to $601.4 million of preferred repurchases and $147.4 million of bitcoin purchases, calculated by Bored Node from the reported weekly amounts. The bitcoin purchases totalled 1,847 BTC. The preferred repurchase programme had $560.3 million of capacity remaining at 8th November.

The two earlier weeks' STRC repurchases came from the company's general cash balance, according to those filings. The latest week's repurchases were funded directly from common-share sale proceeds, so the three-week totals do not mean all the buybacks were financed in the same way.

Preferred shares carry different claims

STRC is Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock. Preferred equity gives holders priority over common shareholders for payments, as the CFA Institute's explanation of equity securities sets out. The allocation therefore concerns both an asset purchase and the composition of the company's equity financing, rather than two interchangeable uses of cash.

Strategy has also changed STRC's payment calendar. Its 29th October filing confirmed amendments effective from 1st November that permit daily dividend record dates and payments on the following business day when declared. The changes did not alter the dividend rate or total regular dividend obligation. Our earlier report on the dividend vote explains that timetable.

For comparison, Strive's new preferred financing shows how another bitcoin treasury company combines coin accumulation with payments to preferred holders. Strategy reported using $21.1 million of its dollar reserve for preferred dividends in the latest week, leaving a reserve of $4.77 billion and a separate general cash balance of $146.2 million.