Strategy bought 1,665 bitcoin for $142.7 million in the week ended September 27, its second straight weekly purchase, and used the same round of stock sales to retire $151.7 million of its STRC preferred shares, according to a Form 8-K filed with the SEC on September 28.
The purchase took Strategy’s total holdings to 847,666 BTC, acquired for an aggregate $63.95 billion at an average price of $75,437 per coin including fees. At current prices near $83,000, the stack is worth roughly $70 billion and represents more than 4 percent of bitcoin’s 21 million supply cap. The latest coins were bought at an average of $85,681, about $10,000 above the blended cost, though the purchase was large enough to move the blended average by only $21.
One stock sale, three uses
The funding structure was the notable part of the filing. Strategy sold 1,469,165 Class A shares through its at-the-market program for $246.2 million in net proceeds, roughly $167.60 per share. Of that, $142.7 million went into bitcoin and $103.5 million into STRC repurchases. Because the buyback cost more than the allocation from stock sales, the company added $48.1 million from its USD Cash account to complete the retirement of 1,534,530 STRC shares at an implied price near $98.86 against a $100 stated amount.
A separate $22.1 million from the USD Reserve, a pool ring-fenced for preferred dividends and debt interest, covered preferred dividend payments. The reserve stands at $5.02 billion and USD Cash at $1.00 billion as of September 27. The company distinguishes the two pools deliberately: USD Cash can be deployed for bitcoin purchases and broader capital management, while the USD Reserve exists to keep preferred dividends and interest paid on schedule.
The sequence marks a change from the prior week, when Strategy bought 950 BTC for $75.7 million entirely from its USD Cash account without issuing new shares. This week the company returned to equity issuance as the funding source, and the purchase was about 75 percent larger in coin terms. Together the two weeks added 2,615 BTC for $218.4 million.
Buying again after a pause
The two consecutive weekly purchases follow a stretch in which Strategy bought nothing. Between August 31 and September 13 the company added zero bitcoin while it worked through STRC buybacks. The resumption of purchases, first from cash and then from fresh equity, suggests the machine is running again, and the remaining ATM capacity is not the constraint. The filing shows $18.84 billion of MSTR share sales still authorized and $17.51 billion in STRC issuance capacity.
The more binding limit is the MSTR share price. Last week showed the link directly: the stock recovered, the company resumed share sales, and bitcoin buying increased. When the shares trade below the level at which issuing them is accretive to existing holders, purchases slow or stop, as the two-week pause demonstrated. Michael Saylor teased the latest buy with his Sunday “Even more orange” post on X, the same formula the company has used for most of its disclosure history.
The STRC buyback loop
STRC is Strategy’s variable-rate perpetual preferred stock, currently carrying a 12 percent dividend rate. The company has been buying it back below its $100 stated amount to reduce future fixed dividend obligations. Repurchasing 1.53 million shares for $151.7 million reduces the dividend bill going forward, which matters for a company whose preferred dividends now run into the tens of millions each month.
The summer showed the other side of that obligation. In late July and early August, Strategy sold bitcoin for the first time since adopting its treasury strategy in 2020, offloading 1,638 BTC for $104.7 million during the week of July 27 to August 2 to fund STRC dividends and buybacks. The episode established that the board-authorized Bitcoin Monetization Program is an active policy tool rather than a theoretical backstop. Since then the company has resumed buying, but the preferred dividend structure still shapes what it does with its balance sheet each week.
$723.5 million remains available under the digital credit securities repurchase program and $1.0 billion under the MSTR buyback authorization, with no common stock repurchased during the week. The buyback has been running for months as STRC has traded below par, and each retirement trims the fixed-rate obligation that sits ahead of common shareholders in the capital structure.
Context for the price
Bitcoin traded near $82,700 on Monday, down about 2 percent over 24 hours and 4 percent over the week, after a run that took it to roughly $87,000 earlier in the month. That leaves last week’s 1,665 coins about 3.5 percent underwater against the $85,681 average Strategy paid. The paper gain on the whole stack remains large, around $6.6 billion at current prices, but the mark-to-market swings have grown as the position has.
The weekly 8-K has become the market’s checklist for whether the accumulation trade is live. Two weeks of buying, funded two different ways, answers that question for now. The next data point is whether the stock stays strong enough to keep the ATM open, since that is what funded this purchase and what would fund the next one.
For holders of the preferred shares, the buyback is the more immediate story. Every STRC share retired below par reduces future dividends and pushes the residual value of the preferred closer to its stated amount. For common shareholders, the trade-off is dilution today against a smaller preferred bill tomorrow. The filing shows the company is running both sides of that equation at once, which is exactly what the capital structure was built to allow.