Strategy bought back US$139 million in STRC stock and did not buy Bitcoin. What will the next move f

Key Insights

Strategy used $139.3 million in cash to repurchase 1.42 million STRC shares. Bitcoin positions remained at 845,050 BTC, with no buy, sell or ATM (issue at market) operations during the period. The $2 billion digital credit plan still retains $1.05 billion in available purchase lines. Last week, Strategy preferred to repurchase its preferred shares rather than increasing its holdings in Bitcoin.

Strategy uses cash for STRC share buybacks

The company spent funds from US$1.393 billion in USD Cash to repurchase 1,420,467 STRC shares between September 8 and September 13. During this period, the company did not conduct any mark-to-market common stock sales, and Bitcoin positions remained at 845,050 BTC for the second consecutive week. The total cost of these bitcoins is US$63.73 billion, and the average cost per bitcoin is approximately US$75,412. The company reports US$5.1 billion in USD Reserve and US$1.3 billion in USD Cash. The decision reflected a balance sheet management strategy rather than a change to its core Bitcoin position.

Strategy repurchased $139.3 million worth of STRC stock| Source: X

Based on the total cost stated, the transaction's price per share is close to $98. The face value of the STRC is US$100. The company said discounts repurchase can reduce expected dividend payments and improve credit quality. This view depends on the price paid and future market conditions.

STRC refers to variable-rate Series A perpetual Stretch preferred stock. The latest move follows a $176.3 million STRC repurchase in the previous reporting period. On September 8, the board expanded the digital credit securities repurchase program to $2 billion.

This plan covers STRC, STRF, STRK and STRD preferred securities. It does not mandate purchases and has no specified expiration date. Strategy may modify, suspend or terminate this authorization.

Bitcoin positions were flat, and the MSTR Stock Price Tracking Risk

report showed that this was the second consecutive week that there was no record of Bitcoin trading. Its 845,050 BTC holdings account for more than 4% of the 21 million Bitcoin supply limit. The cost base disclosed remains at $63.73 billion, including expenses and expenses.

The document does not provide the current market value of Bitcoin reserves. Therefore, this position is directly exposed to fluctuations in BTC prices. According to TradingView data, MSTR shares closed at $130.97 on Friday, down 4.7% during the week, while Bitcoin also fell 3.9% over the same period.

Changes in Bitcoin prices affect reserve values, while preferred stock dividends and capital market conditions shape equity-side calculations. Following the release of the document, no outlook for the next Bitcoin purchase was given.

During the reporting period from September 8 to 13, Strategy did not repurchase MSTR shares. Its separate common share repurchase authorization remains at US$1 billion. The plan can be used when management believes MSTR stock is below intrinsic value. In addition, the Company did not sell MSTR shares through its mark-to-market procedures.

Strategy repurchase program leaves room for further action

As of September 13, Strategy still has US$1.05 billion available under the digital credit securities repurchase program. This leaves room for additional STRC stock purchases. The available amount does not promise that the company must conduct future transactions.

Available methods include open market purchases, block transactions, privately negotiated transactions, tender offers and exchange offers. The plan takes into account market conditions, liquidity, legal requirements and the trading prices of the underlying securities.

The company has made it clear that when repurchase has a value-added effect, STRC is its initial priority. The goal is for STRC's price to trade around its $100 stated amount over time. However, the company made it clear that it cannot guarantee that trading range or any specific price.

Management also evaluates the dividend yield of STRC on a monthly basis. Factors listed include STRC trading levels, market yields, credit spreads, bitcoin prices and volatility. USD Reserve coverage and broader capital structure are also part of the review.

Current documents confirm that the $139.3 million transaction was funded from cash deployments rather than bitcoin sales. The move reduces the supply of STRC shares in circulation while keeping Bitcoin positions unchanged.