Strategy, the company that made buying bitcoin its whole identity, spent almost nine times more last week buying back its own preferred stock than buying bitcoin.
Its 8-K filing for October 12 to 18 shows 1,938,780 shares of STRC, its variable-rate “Stretch” preferred, repurchased for $193.1 million. The bitcoin purchase was 267 BTC for $22.1 million, at an average of $82,900 including fees. The board also raised its preferred buyback programme from $2 billion to $3 billion, leaving $1.16 billion of room.
Most coverage stopped at “Strategy buys more bitcoin.” The more useful question is why a bitcoin treasury company now prefers its own paper, and what that buyback actually earns it.
The buyback is a 12% trade, not a bitcoin trade
STRC pays a 12.00% annual dividend on its $100 stated amount, $0.50 per share every half-month, a rate Strategy confirmed on September 30 for periods from October 16. Every share it retires is one it no longer pays.
Our calculation from the filing:
| Item | Figure |
|---|---|
| STRC shares repurchased (Oct 12-18) | 1,938,780 |
| Amount spent | $193.1 million |
| Average price per share | about $99.60 |
| Annual dividends no longer owed (1,938,780 × $12) | about $23.3 million |
| Yield on the buyback ($12 ÷ $99.60) | about 12.05% |
| Bitcoin bought the same week | $22.1 million |
So the dividends Strategy will no longer owe each year on those shares are larger than everything it spent on bitcoin that week. Retiring a 12% obligation is a guaranteed saving; a bitcoin purchase is a bet on price.
The discount that made it cheap is almost gone
When Strategy started the STRC buybacks on July 27, it paid an average of $86.52 a share, a 13.5% discount to $100. It said buying would be heavier at deeper discounts and “taper as STRC approaches a trading price of $100.”
Last week’s average of about $99.60 is a 0.4% discount. On Strategy’s own rule, the case for heavy buying is close to used up. Yet the dollar amounts have grown, per Decrypt’s tally of the weekly filings:
| Week | STRC bought back | Bitcoin bought |
|---|---|---|
| Last week of September | $151.7M | $142.7M |
| Following week | $176.0M | $29.0M |
| Oct 5-11 | $192.4M | $21.5M |
| Oct 12-18 | $193.1M | $22.1M |
| Four weeks | $713.2M | $215.3M |
Across four weeks that is about $3.30 on its own preferred for every $1 on bitcoin.
The cash pile behind it is shrinking fast
The buybacks come from what Strategy calls USD Cash, not from its separate USD Reserve, which the July release said “will not be used to fund repurchases.” USD Cash fell from $640.5 million to $447.3 million in one week. At $193 million a week, that is roughly 2.3 more weeks of buying before it needs fresh money, such as more common-stock sales.
The $4.83 billion USD Reserve, meant for preferred dividends and debt interest, paid out $45.5 million in dividends that week.
What it means for Indian investors
Indian residents mostly meet Strategy through bitcoin itself or US stocks bought abroad. The week’s buyback equals roughly ₹1,833 crore, against about ₹210 crore spent on bitcoin, at the ₹94.94 per dollar implied by our 25 October price post.
The 12% headline also needs context. Like the Strive SATS preferred we broke down earlier, STRC is perpetual, uninsured and its dividend is “not guaranteed,” per Strategy’s own STRC investor brief. To compare it with safer rupee yields, our stablecoin yield vs FD calculator shows how fixed-income returns stack up. Live prices are on our Bitcoin price page.
BtcMedia verdict
This is balance-sheet housekeeping, not a sign Strategy has gone off bitcoin: it still holds 848,517 BTC, worth about $68.6 billion at $80,850 and about 7.2% above its $75,446 average cost. But the weekly “Saylor buys” headline now hides the bigger cheque. Watch two things in Monday’s filing: whether STRC buying slows now the discount is gone, and whether USD Cash gets topped up. MSCI’s list of “non-operating companies” facing index removal, due November 11, is the other date to mark.
FAQ
Did Strategy stop buying bitcoin? No. It bought 267 BTC from October 12 to 18, but spent far more, $193.1 million, buying back STRC preferred shares.
Why buy back STRC instead of bitcoin? Each retired share stops a 12% annual dividend. Strategy also aims to keep STRC trading near $100 and said it would buy more when the price is further below that.
Is STRC’s 12% dividend guaranteed? No. Strategy reviews the rate monthly and says dividends depend on board declaration and are not guaranteed.
How we calculated this: share counts, amounts, prices and cash balances from Strategy’s October 19, 2026 8-K and July 27 release; four-week totals from Decrypt’s weekly tally; rupee figures at ₹94.94/$ implied by CoinGecko prices at 8:30 AM IST on 25 October.
This article is for information only and is not financial advice.