SKN | Strategy Pauses Bitcoin Purchases to Repurchase $176M of STRC Preferred Shares

Key Points:

• Strategy repurchased 1.8 million STRC preferred shares for $176.3 million, skipping its latest weekly Bitcoin purchase.
• The company doubled its Digital Credit Securities Repurchase Program to $2 billion as STRC traded below its $100 intended par value.
• Strategy continues to hold 845,050 BTC worth billions of dollars, while other corporate buyers such as Strive and Capital B continue expanding their Bitcoin treasuries.

Strategy Shifts Capital Toward STRC

Strategy, the largest publicly traded corporate Bitcoin holder, paused its weekly Bitcoin acquisition to repurchase $176.3 million of its STRC preferred stock.

According to a Tuesday filing with the US Securities and Exchange Commission, Strategy repurchased approximately 1.8 million STRC shares between Aug. 31 and Sept. 7.

The company simultaneously doubled its Digital Credit Securities Repurchase Program to $2 billion, signaling a greater focus on managing its preferred-stock structure while maintaining its substantial Bitcoin exposure.

With no new Bitcoin purchase reported for the latest period, Strategy’s holdings remain at 845,050 BTC. The company has spent approximately $63.6 billion accumulating its Bitcoin treasury, representing an average purchase price of $75,412 per BTC.

The pause follows Strategy’s $370 million Bitcoin acquisition announced the previous week, its first BTC purchase since mid-June.

STRC Trading Below Par Creates Funding Pressure

Strategy’s decision comes as STRC trades below its intended $100 par value.

The preferred stock was trading around $97.70 in premarket activity Tuesday, representing a discount of approximately 2.3% to par. A sustained discount creates an important challenge for Strategy because STRC is one of the company’s primary financing mechanisms for its Bitcoin acquisition strategy.

When preferred shares trade below par, issuing additional shares becomes less attractive as a way to raise capital. The company could consequently face greater pressure to increase the dividend attached to STRC to support investor demand.

Strategy has already raised the annual dividend rate on STRC to 12% after unveiling a new capital framework in June that allows the company to sell Bitcoin under certain circumstances to fund dividends.

The latest repurchase therefore represents more than a simple capital-allocation decision. It also provides Strategy with a mechanism to support the preferred security while Bitcoin purchases remain temporarily on hold.

Corporate Bitcoin Accumulation Continues

Strategy’s pause contrasts with continued accumulation among other corporate Bitcoin treasury companies.

Strive, identified as the fifth-largest corporate Bitcoin treasury, acquired 1,375 BTC for approximately $109 million. The company paid an average of $79,281 per Bitcoin, taking its holdings to 24,531 BTC.

Strive’s Nasdaq-listed ASST shares were down more than 2.5% before Tuesday’s market open, despite having more than doubled over the previous month.

France-listed Capital B also announced a major Bitcoin acquisition, purchasing 376 BTC for approximately $29.5 million. The transaction lifted its holdings to 3,521 BTC and moved it ahead of Sweden’s H100 Group among publicly traded Bitcoin holders.

The divergence illustrates that corporate Bitcoin strategies are increasingly being shaped not only by BTC prices but also by access to capital markets, preferred-stock valuations and the cost of financing additional purchases.

Outlook

Strategy’s latest move suggests that maintaining the financial infrastructure behind its Bitcoin treasury can take priority over continuous BTC accumulation. With STRC trading below par and carrying a 12% annual dividend, repurchasing preferred shares may help manage pressure on the company’s capital structure while preserving its massive Bitcoin position. The broader corporate treasury trend, however, remains intact, with other companies continuing to deploy capital into Bitcoin even as Strategy temporarily shifts its focus.