Strategy shifted a week of capital deployment away from bitcoin and toward its own preferred stock. In an October 26 filing with the U.S. Securities and Exchange Commission, the Virginia-based company said it repurchased 2,068,459 shares of its variable-rate Series A Perpetual Stretch Preferred Stock, known by the ticker STRC, for $204.9 million during October 19–25. The purchase was funded from the company's USD Cash pool. Strategy reported no bitcoin purchase or sale and no share sales through its at-the-market offering program during the same period.

Bitcoin holdings stayed unchanged

The filing puts Strategy's bitcoin position at approximately 848,517 BTC as of October 25. The company said those coins were acquired for an aggregate $64.02 billion, including fees and expenses, at an average cost of about $75,446 per bitcoin. The absence of a weekly purchase does not indicate that Strategy sold any of its existing holdings: the SEC disclosure explicitly says it neither purchased nor sold bitcoin. Cointelegraph and a Benzinga report carried by TradingView independently reported the same pause and the preferred-share transaction.

Related reporting: Strategy sells $246M of MSTR to fund bitcoin and STRC buybacks

Cash was used for a different part of the capital structure

Strategy distinguishes between two dollar pools. Its USD Reserve is intended to support preferred-stock dividends and interest on outstanding debt, while USD Cash can be used for broader bitcoin-treasury-company purposes, including buying bitcoin, adding to the reserve or other capital-management activity. The company said the reserve stood at $4.83 billion on October 25, while USD Cash was $242.4 million after funding the STRC buyback. Cointelegraph calculated that the latter balance fell about 46% from $447.3 million over the week.

Why STRC is the focus

STRC is a Nasdaq-listed perpetual preferred security with a dividend rate that Strategy can adjust monthly around a $100 stated amount. Strategy's product page lists a 12% annualized rate for record dates beginning in October 2026, but it also warns that the rate may change and that cash dividends, liquidity and returns are not guaranteed. Repurchasing the shares can reduce the amount of the security outstanding and may support capital-management goals, but the filing does not promise a particular market-price or dividend outcome. The preferred shares are not collateralized by Strategy's bitcoin holdings.

Repurchase capacity remains substantial

After the week's transaction, Strategy said $956.8 million remained available under its preferred-stock repurchase program. Another $1 billion remained authorized for repurchases of its MSTR common stock. The company did not buy back STRF, STRK, STRD or MSTR shares during the reported period. Those authorizations provide flexibility rather than a commitment: they do not require Strategy to spend the remaining amounts, specify timing or prevent the company from returning to bitcoin purchases in a later reporting period.

What the disclosure changes

The filing shows that Strategy's weekly financing choices now extend beyond issuing securities to acquire bitcoin. Management used a meaningful portion of its deployable cash to address the preferred side of the balance sheet while keeping its bitcoin position intact. That matters to common shareholders, preferred investors and creditors because the mix of cash, repurchases, dividends and bitcoin acquisitions affects liquidity and claims across the capital structure. The next weekly filing will show whether the STRC buyback was a temporary allocation or part of a longer sequence; the October 26 disclosure alone does not establish a permanent change in bitcoin policy.

Sources

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