Strategy Spent Another $139 Million Buying Back STRC. BTC/Share Stayed Essentially Flat.

Another week of STRC repurchases

Last week’s analysis examined Strategy’s decision to spend $176.3 million repurchasing STRC rather than acquire more Bitcoin.

This week, the company continued that approach.

Between September 8 and September 13, Strategy repurchased 1,420,467 STRC shares for $139.3 million. It reported no share sales under its at-the-market offering program, no Bitcoin purchases or sales, and no MSTR common-stock repurchases.

Bitcoin holdings remained at 845,050 BTC, acquired for approximately $63.73 billion, at an average purchase price of $75,412 per bitcoin, including fees and expenses.

The Bitcoin balance stayed the same. The capital structure continued to change.

Strategy paid $139.3 million to retire $142 million of STRC

At STRC’s $100 stated amount, the shares repurchased represent approximately $142.0 million of preferred stated value.

Strategy paid an average of approximately $98.07 per share, about 1.9% below the $100 stated amount.

The difference between the stated amount retired and the cash spent was approximately $2.7 million.

That distinction matters. Strategy used cash to reduce the preferred claim ahead of common shareholders, so the full $142 million reduction should not be interpreted as an equivalent increase in common shareholder value. Assets declined alongside the preferred claim.

The repurchase also removes approximately $17.0 million of annualized regular dividends, calculated at STRC’s current 12% rate. Because the rate is variable, that is a calculation at today’s rate rather than guaranteed future savings.

Two reporting periods, $315.6 million deployed

Taken together, the latest two reporting periods show a substantial commitment to STRC repurchases.

Strategy has used $315.6 million of cash across these periods to retire approximately $323.1 million of STRC stated amount.

At the current dividend rate, those shares represented approximately $38.8 million in annualized regular dividends.

The company’s average repurchase price also increased, from approximately $97.36 last period to $98.07 this period. Strategy continued buying as the discount to stated amount narrowed.

These are average execution prices. They do not, by themselves, establish that the repurchases caused STRC’s market price to rise.

What happened to BTC/share?

The disclosed transactions do not directly change gross BTC/share.

Strategy neither bought nor sold Bitcoin. It sold no shares through its ATM program and repurchased no MSTR common stock. STRC is preferred stock, so retiring it does not reduce the common-share denominator used to calculate MSTR’s gross BTC/share.

That supports treating the week’s result as essentially flat.

There is a small but important distinction between saying the disclosed transactions did not change BTC/share and saying the filing proves that every common-share measure was exactly unchanged. The weekly 8-K does not provide a complete common-share reconciliation. Compensation, conversions or other activity can affect a denominator independently of ATM sales.

For this filing, the meaningful change is the reduction in preferred claims and associated dividends, rather than an increase in Bitcoin holdings per common share.

The repurchases came from USD Cash

Strategy explicitly states that the $139.3 million came from USD Cash.

The company distinguishes that balance from its USD Reserve, which is intended to support preferred dividends and interest on outstanding debt.

At September 13, Strategy reported:

• USD Reserve: $5.10 billion
• USD Cash: $1.30 billion
• Combined balance: $6.40 billion

The reserve was unchanged from the prior reporting date. USD Cash declined from approximately $1.44 billion to $1.30 billion, consistent with the disclosed repurchase spending at the precision of those rounded balances.

Strategy maintained its designated reserve while using its more flexible cash balance to retire preferred stock.

Why keep repurchasing STRC?

Strategy’s published capital framework identifies an objective of having STRC trade around $99 to $100, close to its $100 stated amount. It also identifies preferred repurchases as a tool for reducing expected dividends and strengthening the capital structure. Strategy’s capital framework

This week’s activity is consistent with that framework.

For common shareholders, repurchasing STRC below stated amount reduces a senior preferred claim at a discount and lowers the associated dividend requirement. It also uses cash that could otherwise remain available for Bitcoin purchases or other purposes.

Trading closer to stated amount could make future STRC issuance more attractive: Strategy would receive more proceeds for each dollar of preferred stated amount issued. But this week’s filing does not establish when issuance will resume or whether repurchases will achieve the company’s trading-price objective.

What we’re watching next

Strategy still has approximately $1.05 billion available under its digital credit securities repurchase program, alongside $1.0 billion under its MSTR common-stock repurchase program. Those are remaining authorizations, not commitments to spend.

The next filings will show how Strategy allocates capital among additional preferred repurchases, Bitcoin purchases, common-stock repurchases and liquidity.

The narrowing STRC discount is also worth tracking. Buying closer to $100 reduces the discount captured on each share, although retiring the shares still removes their associated dividend requirements.

For now, the result is straightforward: Bitcoin holdings remained unchanged, while another $139.3 million of cash reduced STRC outstanding and approximately $17.0 million of annualized dividends at the current rate.

BTC/share captures the Bitcoin side of that decision. The cash balance and preferred obligations explain the rest.