Bitcoin

<h2 id="header-0">Key Facts</h2>
<ul>
 <li>Strategy bought 250 BTC for $21.5 million in the week to Oct. 11 and spent $192.4 million buying back its STRC preferred stock, its filing shows.</li>
 <li>Since Sept. 28, Strategy has spent $368.7 million on STRC buybacks and $50.2 million on Bitcoin, and it has sold no preferred stock.</li>
 <li>STRC traded at $99.83 on Tuesday, with $354.8 million left in Strategy's buyback program ahead of an Oct. 28 vote on daily dividends.</li>
</ul>
Strategy bought 250 Bitcoin (<a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/currencies/bitcoin/">BTC</a>) last week and spent nearly nine times as much buying back its STRC preferred stock. Its common shareholders vote on Oct. 28 on a plan meant to keep STRC near its $100 target.
The largest corporate Bitcoin holder is putting most of its spare cash into holding STRC at that level. Its proxy filing ties STRC's price to its ability to raise <a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/glossary/capital">capital</a> for more Bitcoin. That makes the vote the next test of whether Strategy can reopen its preferred-stock funding channel.
Chief executive Phong Le has blamed STRC's slump earlier this year on borrowed money.
"We did not expect the amount of leverage that came into the system," Le said on a podcast in late September, Cointelegraph <a target="_blank" rel="noopener noreferrer nofollow" href="https://cointelegraph.com/news/strategy-seeks-shareholder-approval-daily-preferred-stock-dividends">reported</a>.
<h2 id="header-1">Where Did Strategy's Cash Go? Mostly Into STRC Buybacks</h2>
Strategy bought the coins between Oct. 5 and Oct. 11 for $21.5 million, its <a target="_blank" rel="noopener noreferrer nofollow" href="https://www.sec.gov/Archives/edgar/data/0001050446/000119312526419726/mstr-ex99_1.htm">filing</a> shows. It paid with proceeds from sales of its MSTR common stock. It also spent $192.4 million buying back STRC shares.<tweet-embed url="https://x.com/saylor/status/2109615811954630703"></tweet-embed>
The pattern has held since late September. Over the last two weeks, Strategy has spent about seven times as much retiring STRC as buying Bitcoin, its filings show.
The company has sold no preferred stock in that time. Its at-the-market program lets it sell new shares gradually into the market. That program still has billions of dollars of STRC available.
The slowdown extends beyond Strategy. Listed companies bought far less Bitcoin over the summer than in a single month of 2025, Glassnode <a target="_blank" rel="noopener noreferrer nofollow" href="https://research.glassnode.com/the-week-onchain-week-37-2026/">found</a> in September.
<h2 id="header-2">Why Hold STRC at $100? Strategy Wants to Sell More</h2>
STRC pays a variable dividend, now 12% a year. Strategy plans to keep that rate until STRC shows "sustained, healthy trading near $100 per share," it <a target="_blank" rel="noopener noreferrer nofollow" href="https://www.sec.gov/Archives/edgar/data/0001050446/000119312526409863/mstr-20260930.htm">said</a> on Sept. 30.
The <a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/glossary/security">security</a> traded at $99.83 on Tuesday, up from a low of $71.25 in June, StockAnalysis <a target="_blank" rel="noopener noreferrer nofollow" href="https://stockanalysis.com/stocks/strc/">data</a> show. Some buyers had used <a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/glossary/leverage">leverage</a>, borrowing against their Bitcoin at lower <a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/glossary/interest-rates">rates</a> to collect STRC's dividend, Le said. They sold when Bitcoin fell.
Strategy has <a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/article/strategy-proposes-daily-dividends-for-strc-3-other-preferred-stocks">proposed</a> paying dividends on its preferred stocks every day. Smaller, more frequent payouts are meant to shrink the price swings around each payment date and improve <a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/glossary/liquidity">liquidity</a>, its proxy says.
The filing also says daily dividends would help Strategy "issue and maintain STRC Stock" near its stated amount.
<h2 id="header-3">What Comes Next? A Dividend Vote and Quarterly Results</h2>
K33 Research estimates Strategy would hold almost as much Bitcoin had it skipped STRC this year.
"If the USD reserve build, the STRC buybacks and the dividends was spent on BTC instead, you end up with 843k BTC vs 848k actual," K33's Vetle Lunde <a target="_blank" rel="noopener noreferrer nofollow" href="https://x.com/VetleLunde/status/2109938326815773099">wrote</a> on X. That route would have saved more than $700 million a year in dividends, he added.<tweet-embed url="https://x.com/VetleLunde/status/2109938326815773099"></tweet-embed>
His estimate assumes Strategy could have sold the same amount of MSTR stock at the same prices without STRC.
Strategy also keeps a separate dollar reserve for preferred dividends and debt interest. It reports third-quarter results on Oct. 29.
The $354.8 million left in its buyback program would last about two more weeks at last week's pace.
"The Board believes that more efficient access to preferred equity capital could benefit holders of Common Stock," Strategy <a target="_blank" rel="noopener noreferrer nofollow" href="https://www.sec.gov/Archives/edgar/data/0001050446/000119312526413159/d503578ddef14a.htm">wrote</a> in its proxy filing, "by supporting the Company's ability to acquire bitcoin in a manner that is accretive to its stockholders."
Further Reading: <a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/article/has-bitcoin-bottomed-us-funds-selling">Has Bitcoin Bottomed? Analysts Say Yes Despite US Funds Selling</a>

Why Strategy Is Pouring Cash Into STRC Instead of More Bitcoin

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