In an October 26 Form 8-K, Strategy said it neither bought nor sold Bitcoin during the week ended October 25, leaving its holdings at 848,517 BTC, and sold no shares through its at-the-market programme. The filing also said Strategy used cash to spend $204.9 million repurchasing 2,068,459 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock, which trades under the ticker STRC. The pause ended a five-week run of Bitcoin acquisitions, according to The Block.
Bitcoin holdings remain at 848,517 BTC
Strategy’s Bitcoin holdings were acquired for $64.02 billion at an average cost of about $75,446 per bitcoin, according to the filing. The company’s reported balance did not change over October 19–25.
Alongside the absence of Bitcoin transactions, the filing recorded no share sales through Strategy’s ATM programme during that period—a notable detail given the company’s use of equity-market activity alongside other financing tools in its broader corporate funding approach, though the disclosure offers no further explanation for the pause.
The five preceding weeks of acquisitions provide the immediate backdrop to the pause. The latest disclosure, however, is principally a record of the company’s unchanged holdings and its preferred-stock repurchase, rather than a statement on the timing or outlook for future Bitcoin purchases.
Strategy spends $204.9M repurchasing STRC shares
Strategy repurchased 2,068,459 STRC shares for an aggregate $204.9 million. The transaction was funded from its USD Cash balance, which stood at $242.4 million as of October 25 after the repurchases, the company said in its 8-K filing.
That cash figure is separate from Strategy’s USD Reserve, reported at $4.83 billion on the same date. The distinction is relevant to the funding disclosure: the company specifically identified its USD Cash balance as the source of the STRC buyback.
The remaining preferred-stock repurchase authorisation leaves Strategy with scope for further repurchases: $956.8 million remained after the purchase, The Block reported. Neither the filing nor the report sets out a schedule for using that capacity.
Visual accompanying The Block’s report on Strategy’s unchanged Bitcoin holdings and $204.9 million STRC repurchase. — Source: The Block
STRC is the first priority in Strategy’s capital framework
Strategy’s June 29 capital framework made STRC the first repurchase priority if management determines that a buyback is accretive, rather than an automatic use of capital. The company said the potential benefits included lower expected preferred-dividend payments and stronger credit quality.
It subsequently repurchased $204.9 million of STRC preferred stock while its Bitcoin holdings remained unchanged, putting that priority into practice.
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Source: Crypto Daily