In an Oct. 5 filing with the US Securities and Exchange Commission (SEC), Strategy revealed it purchased 334 Bitcoin for $28.7 million between Oct. 1 and Oct. 4, marking its smallest positive BTC acquisition of 2026. Meanwhile, the Michael Saylor-founded company allocated $176.3 million toward repurchasing its variable-rate perpetual preferred stock, STRC.
Key Takeaways
- Smallest Purchase of 2026: Strategy acquired 334 BTC at an average price of $85,838.80, dipping below its previous yearly low of 520 BTC in June.
- Unrealized BTC Gains: A 43% price rally in Q3 lifted total holdings of 848,000 BTC to a carrying value of $70.82 billion, generating a $20.91 billion fair-value gain.
- STRC Buyback Escalation: Strategy spent $176.3 million repurchasing 1.77 million STRC shares from Sept. 28 to Oct. 4, taking total preferred buyback spending to $1.45 billion.
- Upcoming Vote: MSTR shareholders as of Sept. 25 will vote on Oct. 28 to approve daily dividend accruals starting Nov. 1 to help restore STRC to its $100 par value.
Bitcoin Reserve Valuation Reaches $70.82 Billion
Strategy financed its latest 334 BTC addition by selling 92,894 MSTR shares for $15.7 million and supplying $13 million from cash. Across its total holdings of 848,000 BTC, the company's aggregate acquisition cost stands at $63.97 billion, reflecting an average cost of $75,440.70 per Bitcoin. This latest acquisition represents a notable slowdown compared to Strategy's earlier Bitcoin purchases.
Despite the reduced buying pace, Bitcoin's 43% third-quarter surge boosted the fair market value of Strategy's holdings to $70.82 billion as of Sept. 30. Under fair-value accounting, Strategy recorded an estimated $20.91 billion digital-asset gain. Chaitanya Jain, Strategy's head of investor relations, noted that every $1,000 increase in BTC price during Q3 added $848 million in fair market value to the company.
Preferred Stock Buybacks Top $1.45 Billion Ahead of Oct. 28 Shareholder Vote
While direct Bitcoin acquisition slowed, Strategy committed more than six times as much capital to supporting its preferred stock. The company repurchased 1.77 million STRC shares for $176.3 million between Sept. 28 and Oct. 4, bringing total repurchases under its program to $1.45 billion and leaving $547.2 million available under its $2 billion authorized limit. STRC last closed at its $100 stated amount in mid-May and has remained below par for nearly 100 consecutive trading sessions, despite previous adjustments including raising the annual dividend rate to 12% and switching to semi-monthly payouts in June.
To address this persistent discount, Strategy filed a proxy proposing daily dividend accruals for its four US-listed preferred securities. Dividends on STRC would accrue every calendar day and be payable on the next business day, with the new schedule taking effect Nov. 1 and the first payment due Nov. 2 if approved. Only MSTR common stock holders of record as of Sept. 25 will vote on the Oct. 28 measure. This structural shift comes amid growing market debate over Strategy's core capital allocation model.
Why It Matters
Strategy's heavy capital allocation toward STRC buybacks demonstrates how maintaining structural parity in its preferred stock is taking priority over spot Bitcoin accumulation. Successfully restoring STRC to its $100 target through daily dividend accruals is critical if Strategy intends to continue using preferred equity as a non-dilutive capital engine. If the Oct. 28 vote fails to anchor STRC near par, the company will face reduced capital efficiency when raising fresh funds for future Bitcoin acquisitions.
