Strategy devoted more capital to repurchasing its own preferred shares than to buying Bitcoin last week, according to a Monday filing with the U.S. Securities and Exchange Commission. The weekly disclosure covered both the company's latest Bitcoin acquisition and an ongoing buyback of its Stretch preferred stock, along with a breakdown of how the moves were funded.

The company purchased 1,036 Bitcoin for $81.9 million, at an average price of $79,012 per coin. Over the same period, it paid $188.3 million to buy back Stretch preferred shares. Both figures appeared in the same weekly filing.

This marked Strategy's second consecutive weekly Bitcoin purchase. In the prior week, the company acquired 811 Bitcoin for $65.5 million, bringing its holdings to 849,328 Bitcoin before the latest addition.

Michael Saylor signaled the acquisition on Sunday in his usual post on X, where he shares a hint most Sundays ahead of the company's weekly report. The SEC filing confirmed the purchase the following day.

Where the Money Came From

Strategy funded both transactions by selling approximately 2.05 million shares of its common stock under its at-the-market offering program, which it uses to issue new shares into the open market over time. The sales produced net proceeds of $283.8 million.

Of that total, $188.3 million went toward the preferred share buyback and $81.9 million funded the Bitcoin purchase. The remaining $13.6 million was added to the company's U.S. dollar cash balance, with the three allocations accounting for the full $283.8 million raised.

The repurchase covered roughly 1.89 million Stretch shares, a class of security separate from the company's common stock. Preferred stock ranks ahead of common equity in a company's capital structure and carries dividend obligations, and Strategy's preferred classes accrue dividends daily — an obligation the company covered last week by drawing on its dollar reserve. Shares bought back under the program cease to be outstanding, shrinking the base on which those daily dividends accrue. One week earlier, Strategy had spent $208.2 million under the same program.

Since the beginning of October, the company has directed about $1.06 billion into these buybacks. Over the same stretch, it spent $219.7 million on Bitcoin, meaning preferred share repurchases ran nearly five times larger. For a company whose treasury strategy has historically centered on directing newly raised capital into Bitcoin accumulation, that mix marks a substantial reallocation, and upcoming weekly filings will show whether it persists.

Holdings and Reserves

Strategy's treasury now stands at 850,364 Bitcoin, acquired for a cumulative $64.16 billion — an average of $75,456 per coin across all purchases to date. The position equals roughly 4.05% of Bitcoin's capped supply of 21 million coins — the largest Bitcoin holding of any public company — and the company's count now sits above 850,000. The latest purchase was executed at a price above the company's average cost per coin, nudging the blended average upward.

The company also maintains a separate U.S. dollar reserve, which slipped to $4.77 billion from $4.79 billion after Strategy drew down $21.1 million to cover dividends on its preferred stock. That reserve is distinct from the USD cash balance, which climbed about 10% to $146.2 million from $132.7 million.

Shareholders have approved daily dividends on four of the company's preferred stocks. The Stretch preferred shares reclaimed their $100 par value last week, and Strategy continued buying the shares even after they reached par, although they have since drifted slightly below that threshold. Market data put the shares at about $99.7, higher over the past one and three months after a rebound from a yearly low of around $75.

Strategy common stock fell about 3% to roughly $125 in Monday premarket trading, with other market data showing the shares near $124. The stock is down more than 16% over the past month.

Source: Blockonomi