Strategy buys back record $204.9 million in STRC as Strive buys $511.4 million in BTC

Strategy spent a record $204.9 million retiring 2.07 million STRC preferred shares last week. Strategy has now spent more than $2 billion on the buyback campaign since July. Strategy bought no Bitcoin between Oct. 19 and Oct. 25, ending five consecutive weeks of purchases with the first weekly pause since mid-September. Strategy raised no additional money through the company's at-the-market equity program. Strategy's Bitcoin holdings remained at 848,517 BTC, acquired for approximately $64.02 billion.

Bitcoin analyst Ragnar estimated that Strategy supplied 28% of STRC's trading volume during the latest week, indicating the company's contribution to demand. STRC has regained much of the value lost during Bitcoin's June selloff, when STRC briefly traded near $71 against a stated value of $100. Strategy initially used the discount to reduce outstanding preferred capital and future dividend commitments through repurchases. Strategy publicly said the company would reduce the intensity of repurchases as STRC approached $100. Strategy's first $25 million repurchase averaged $86.52 per share, versus approximately $99.06 for the latest transaction. However, weekly buyback spending has kept increasing despite the smaller discount.

The larger buybacks have consumed cash otherwise available for Bitcoin purchases. Strategy's unrestricted USD cash fell 84.8%, from $1.6 billion to $242.4 million, during the latest reporting week. Strategy did not draw on a separate $4.83 billion reserve designated for preferred dividends and debt interest. Strategy retains $956.8 million of repurchase capacity after increasing the preferred-stock buyback authorization to $3 billion.

Market observers argue that Strategy's next step could lessen the need for further STRC market intervention. Strategy is asking shareholders on Wednesday, Oct. 28, to approve daily dividends for preferred securities, replacing STRC's twice-monthly payments. The proposal would let investors collect and reinvest income more frequently. The proposed schedule could also moderate price movements associated with dividend payment dates. Strategy hopes daily payments will support an STRC price near $100 without raising the current annual dividend rate of 12%. Ragnar suggested that management may assess whether daily payments generate sufficient investor interest before considering another dividend-rate increase. The first daily STRC payment is scheduled for Nov. 2 if shareholders approve, allowing Strategy to test demand as remaining buyback capacity decreases.

Strive is raising capital through high-yield preferred securities to accelerate Bitcoin purchases. Strive acquired a record 6,182 BTC for approximately $511.4 million between Oct. 17 and Oct. 23. Strive's holdings increased to 43,000 BTC, bringing the company closer to overtaking Japan's Metaplanet as the second-largest publicly traded corporate Bitcoin holder worldwide. Strive holds 1,000 BTC less than Metaplanet, which holds 44,000 BTC. Strive also holds 514 BTC less than Tether-backed Twenty One Capital, which holds 43,514 BTC. The smaller gap advances Chief Executive Matt Cole's ambition to make Strive the second-largest corporate Bitcoin holder before the end of 2026.

Strive completed a $630 million offering of 15% Series A Perpetual SATS Preferred Stock on Oct. 20. Strive issued seven million shares for $90 each. Strive committed to cumulative annual dividends of $15 per share. The initial issuance creates approximately $105 million in annualized dividend commitments. Strive reserved enough money for 18 months of payments. Strive disclosed a new $1 billion at-the-market program on Monday, permitting additional SATS share sales to fund Bitcoin purchases, other investments and general corporate expenses.

Strive's cash and cash equivalents rose from $317.5 million a week earlier to $504.4 million as of Oct. 23, despite the Bitcoin acquisition. Strive retained an unchanged position of 505,000 Strategy STRC preferred shares, worth approximately $50.2 million, during the week of Strategy's record buybacks. However, preferred-stock financing creates recurring expenses that could increase alongside Strive's Bitcoin holdings. Strive's prospectus says future SATS cash dividends are expected to be financed primarily by further capital raising, making sustained investor demand important. The new authorization does not ensure that Strive will raise the full $1 billion. Market conditions and demand for SATS shares will determine the timing and scale of subsequent sales.