Key Insights
- Strategy doubled its digital credit repurchase authorization to $2 billion.
- STRC stock remained below Strategy’s targeted $100 stated amount.
- Strive bought 1,375 Bitcoin while Strategy paused Bitcoin purchases.
Strategy said on Sept. 8 that it spent $176.3 million repurchasing STRC stock. It also doubled its digital credit buyback authorization to $2 billion. The company used U.S. dollar cash while leaving its Bitcoin holdings unchanged.
The move shifted capital toward preferred-stock support instead of another Bitcoin purchase. Strategy also retained a separate $1 billion authorization for MSTR stock repurchases. It used none during the period. The allocation mattered because Strategy had previously directed capital toward expanding Bitcoin exposure.
Strategy Expands STRC Stock Repurchase Program
Strategy’s Sept. 8 Form 8-K showed it repurchased 1,810,885 STRC shares. Those purchases occurred between Aug. 31 and Sept. 7.
The company increased its Digital Credit Securities Repurchase Program from $1 billion to $2 billion. The filing showed $1.19 billion remained available under that authorization as of Sept. 7.
Strategy funded the latest STRC stock purchases with $176.3 million from its U.S. dollar cash balance. The company ended the period with $5.10 billion in its U.S. dollar reserve. It also held $1.44 billion in separate U.S. dollar cash.
Strategy uses the reserve for preferred dividends and debt interest payments. Management maintains U.S. dollar cash for broader treasury uses. Those uses can cover repurchases or Bitcoin acquisitions.
The company had already established a policy of buying STRC below its $100 stated amount. Strategy said in July that purchases should taper as the preferred stock approached that level.
Strategy’s second-quarter update set a longer-term objective around $99 to $100. Chief Executive Officer Phong Le linked discounted repurchases to lower future preferred dividend obligations.
Strategy Holds Bitcoin Steady as MSTR Stock Falls
Strategy did not buy or sell Bitcoin between Aug. 31 and Sept. 7. It also sold no shares through its at-the-market program during that period.
The company held 845,050 Bitcoin as of Sept. 7. Those coins carried an aggregate acquisition cost of $63.73 billion. Strategy reported an average acquisition price of about $75,412 per Bitcoin.
CoinMarketCap data placed Bitcoin near $78,770 on Sept. 8 during trading. That left Strategy’s average acquisition cost below the prevailing market price.
The absence of another Bitcoin purchase followed Strategy’s 4,603 BTC acquisition in late August. Barron’s reported MSTR stock fell 4.1% to $136.90 on Sept. 8. Bitcoin weakness pressured several crypto-linked equities during September trading.
The separate MSTR stock repurchase program still had its full $1 billion authorization available. Strategy reported no MSTR stock purchases under that program during the latest period.
The capital allocation split showed management prioritizing STRC support while preserving Bitcoin exposure. It also kept common-share repurchases unused despite pressure on MSTR stock.
STRC Buyback Push Comes as Strive Adds 1,375 Bitcoin
Strive reported a fresh Bitcoin purchase on Sept. 8 through its Form 8-K. The company bought 1,375 BTC between Aug. 31 and Sept. 4.
Strive paid an average $79,281 per Bitcoin, inclusive of fees and expenses. The filing placed its total Bitcoin holdings at 24,531 BTC as of Sept. 4.
That purchase represented roughly $109 million based on Strive’s disclosed average acquisition price. Its Bitcoin holdings increased from 23,156 BTC one week earlier.
Strive separately held 505,000 shares of Strategy’s STRC stock. It valued that position at $49.364 million on Sept. 4. The position was valued at $49.152 million on Aug. 28.
That valuation implied roughly $97.75 per STRC share on Sept. 4. The figure placed the security about 2.25% below its $100 stated amount.
The comparison showed two Bitcoin-treasury companies taking different capital actions during overlapping periods. Strategy directed cash toward preferred-stock repurchases. Strive instead expanded its Bitcoin treasury.
Strategy Faces Next Test Near STRC’s $100 Stated Amount
Strategy’s next filings will show whether it continues repurchasing STRC as the security approaches $100. Its July policy said purchases should generally slow as the discount narrows.
Investors will also watch whether Strategy resumes Bitcoin purchases or activates its MSTR stock authorization. The next reported capital-allocation period will provide the clearest evidence of that choice.
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