Key Highlights
- During the period from September 8 through September 13, Strategy deployed $139.3 million to buy back STRC preferred stock, drawing exclusively from its USD Cash holdings.
- The company’s bitcoin position stayed flat at 845,050 BTC (valued at approximately $65.7 billion) for a second consecutive week.
- USD Cash reserves decreased to $1.3 billion by September 14, declining from $1.44 billion recorded the previous week.
- CEO Michael Saylor discontinued his customary Sunday Bitcoin position updates on social media, which historically preceded new BTC acquisition announcements.
- A pending MSCI index classification decision due October 16 threatens to eliminate Strategy’s benchmark inclusion, potentially triggering billions in passive investment outflows.
Shares of Strategy experienced a 4.7% decline throughout the week, settling at $130.97 by Friday’s close, coinciding with the firm’s second straight week without bitcoin acquisitions as resources were channeled toward preferred equity buybacks.
The company completed the repurchase of 1,420,467 units of STRC preferred stock for a total outlay of $139.3 million during the September 8-13 window, utilizing its USD Cash reserves exclusively to finance the transaction.
Those cash reserves registered at $1.3 billion on September 14, representing a decrease from the prior week’s $1.44 billion level. The reduction aligns closely with the capital deployed for STRC repurchases.
The company did not execute any buybacks of STRF, STRK, or STRD preferred securities during this timeframe. Additionally, the authorized $1 billion common stock repurchase program remained untapped.
The week’s STRC repurchase volume of $139.3 million represented a decline from the preceding week’s $176.3 million deployment. Roughly $1.05 billion in capacity remains available under the company’s $2 billion digital credit securities buyback authorization as of September 13.
Strategy maintains a separate USD Reserve account, designated specifically for preferred stock dividend distributions and interest obligations, which held $5.1 billion as of September 14.
No Change in Bitcoin Position for Consecutive Weeks
Strategy’s aggregate bitcoin treasury remained steady at 845,050 BTC, purchased at a weighted average price of $75,412 per bitcoin for an aggregate investment of $63.73 billion. Based on prevailing market prices, the portfolio carries a market value of $65.7 billion, representing approximately $2 billion in paper profits.
The most recent bitcoin acquisition occurred in late August, when Strategy added 4,603 BTC at a cost of $369.7 million. This marked the company’s first BTC purchase since June.
Bitcoin’s price declined 3.9% over the same period that saw Strategy’s equity fall.
Strategy’s treasury position accounts for over 4% of bitcoin’s fixed 21 million coin maximum supply. Data from Bitcoin Treasuries indicates that 197 publicly traded corporations currently maintain BTC on their corporate balance sheets.
The four largest bitcoin holders trailing Strategy include Tether-supported Twenty One (43,514 BTC), Metaplanet (43,000 BTC), MARA (35,577 BTC), and Bitcoin Standard Treasury Company (30,021 BTC).
Index Classification Decision Looms
CEO Michael Saylor has discontinued publishing his weekly Sunday Bitcoin position updates across his social media channels. These posts historically functioned as advance indicators of forthcoming BTC purchase disclosures.
Strategy currently awaits an MSCI determination regarding a proposed framework that would exclude entities designated as non-operating companies from global equity index benchmarks. The public consultation period concludes September 30, with the final ruling anticipated on October 16.
Should the classification change proceed, it could trigger the reallocation of billions in passive index fund capital currently linked to Strategy’s existing benchmark representation.
According to Strategy’s proprietary credit monitoring metrics, STRC’s BTC Credit spread currently measures approximately 57 basis points, comfortably within the company’s self-defined investment-grade ceiling of 150 basis points. The blended breakeven annualized return stands at 2.48%, accompanied by a duration profile of 40.3 years.
MSTR stock continues trading roughly 71% below its 2025 high watermark, with the enterprise market-cap-to-NAV multiple hovering around 1.1.
The post Strategy (MSTR) Pivots to Preferred Stock Buybacks as Bitcoin Purchases Pause appeared first on Blockonomi.
