Strategy Inc (Nasdaq: MSTR), formerly MicroStrategy, said on October 12, 2026, that it spent $192.4 million buying back its STRC preferred stock last week. Bitcoin buying shrank to 250 BTC for $21.5 million over the same October 5 to 11 window.
The Brief
- Strategy repurchased 1,932,145 STRC shares for $192.4 million, leaving $354.8 million under its preferred stock buyback program.
- The company sold no preferred stock through its at-the-market program and raised $21.0 million from 125,183 MSTR common shares.
- Strategy’s treasury now totals 848,250 BTC, acquired for $64.00 billion at an average of $75,444 per coin.
- The USD Reserve held $4.88 billion as of October 11, while USD Cash stood at $640.5 million.
Strategy spent more retiring STRC than buying bitcoin
STRC was the only security Strategy bought back during the week, according to its capital markets update. The STRF, STRK and STRD preferred lines saw no repurchases. Another $1.0 billion of MSTR buyback capacity sits unused.
The choice of STRC stands out because it’s also the preferred line Strategy has the most room to sell. The Variable Rate Series A Perpetual Stretch Preferred Stock still shows $17,510.8 million available under the ATM program. The company issued none of it last week.
Strategy has acquired 250 $BTC and repurchased $192M of $STRC. As of 10/11/26, we hold 848,250 BTC and $5.5B of USD Assets. $MSTR https://t.co/hhxR6N95mq
— Michael Saylor (@saylor) October 12, 2026
Retiring shares follows a simple cost logic. Strategy calculates preferred dividends on the face value of shares sold, according to the update. Every STRC share it buys back drops out of that base for future STRC dividend payments.
The release leaves three questions open:
- Which cash balance paid for the 1,932,145 STRC shares?
- Will buybacks continue at a similar size once the remaining authorization shrinks?
- Why did Strategy pick STRC over the three other preferred series?
Strategy’s ATM table also shows no preferred issuance for the week, despite sizable capacity left in every line:
- STRF, the 10.00% Series A Perpetual Strife Preferred Stock: $1,619.3 million available
- STRK, the 8.00% Series A Perpetual Strike Preferred Stock: $2,100.0 million available
- STRD, the 10.00% Series A Perpetual Stride Preferred Stock: $4,014.8 million available
- MSTR Class A common stock: $18,807.6 million available
Counting STRC, the four preferred series hold about $25.2 billion of unused ATM room combined.
Common stock did all the selling. Strategy sold 125,183 MSTR shares, with proceeds shown net of sales commission.
Bitcoin buys ran on common stock and a sliver of cash
Equity funded almost all of the week’s bitcoin. A footnote in the update attributes the $21.0 million in MSTR proceeds to bitcoin purchases and the remaining $0.5 million to USD Cash.
Strategy paid an average of $86,194 per coin, inclusive of fees. That price sits well above the $75,444 blended cost across its full holdings. Buying above that running average nudges the company’s average cost per bitcoin higher each time it happens.
The 250 BTC addition is small against an 848,250 BTC treasury. It amounts to roughly 0.03% of total holdings.
Strategy describes the USD Reserve as a pool “intended to support the payment of dividends on Strategy’s preferred stock,” along with interest on its debt. USD Cash serves wider purposes, including buying bitcoin and topping up that reserve.
That split matters for preferred holders. Dividends draw on a reserve sized in billions, while the buyback came with no disclosed funding line.
The Bottom Line
Strategy’s update makes the week’s priority plain. Shrinking STRC outranked growing the bitcoin stack by roughly $171 million. The constraint now sits in a footnote. At last week’s pace, the $354.8 million left in the preferred buyback authorization covers less than two more weeks of STRC purchases. The next update’s remaining balance will show how fast that room is closing.
