Strategy Continues Pause on Bitcoin Purchases, Spends $139M Repurchasing STRC Preferred Stock
Michael Saylor's Strategy has continued its pause in Bitcoin purchases for the second consecutive week and instead allocated $139.3 million to repurchase shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC). The buyback, which occurred between Sept. 8 and Sept. 13, involved 1.42 million STRC shares funded entirely from Strategy's USD Cash reserve. This follows a $176.3 million repurchase the previous week as part of an expanded Digital Credit Securities Repurchase Program now capped at $2 billion. Strategy currently holds 845,050 BTC with no new acquisitions since late August when it bought 4,603 coins for $369.7 million. The company's financing strategy has shifted focus toward managing its preferred stock and capital structure amid growing concerns about liquidity pressures from dividend obligations on STRC and other securities. Critics like Peter Schiff have intensified their scrutiny of Strategy’s financial model, arguing that the firm is undercapitalized to support its preferred shares while maintaining Bitcoin accumulation. Some investors are also questioning whether continuing with STRC buybacks detracts from capital available for further BTC purchases.
Topics: Bitcoin holdings capital allocation preferred stock stock buyback