Strategy buys $176.3M of preferred stock, skips Bitcoin

Strategy has not purchased Bitcoin this week, instead directing $176.3 million to repurchase its own preferred stock, according to a September 8 filing signed by general counsel Thomas C. Chow. The company spent the entire amount on STRC, its variable-rate perpetual preferred stock, buying it at a discount to its $100 par value. Strategy did not buy or sell Bitcoin during this period, leaving its holdings unchanged at 846,000 coins. The filing reveals that Strategy is prioritizing the management of its capital structure over adding to its digital asset reserve.

The move comes after a roughly 10-week pause in Bitcoin purchases. During that interval, Strategy sold approximately 7,000 BTC at prices between $59,000 and $64,000 before buying 4,603 coins at an average price of $80,318 between August 24 and 30. The most recent purchase is already below its entry price. MSTR shares traded at $134, down 1.57% on the day of the filing. The company’s Bitcoin stack currently reflects an unrealized loss of $8.3 billion.

In the same filing, Strategy doubled its Digital Credit Securities Repurchase Program from $1.0 billion to $2.0 billion. This program authorizes the company to repurchase STRC when the security trades below its par value. Following the $176.3 million purchase, roughly $1.19 billion remains available under the expanded authorization. Strategy has spent approximately $811.5 million repurchasing STRC since the campaign began in July, which includes a $25.0 million repurchase reported in its Q2 2026 results at an average 13.47% discount to par. The company funded these purchases with existing cash and did not issue new securities or use its at-the-market program to sell shares.

Strategy did not use the capital to support its other preferred securities, STRF, STRK, or STRD, nor did it repurchase MSTR common stock. A separate $1.0 billion authorization for common stock repurchases remains unused. By buying STRC below par, Strategy reduces the amount of preferred stock outstanding and cuts future dividend payments. CEO Phong Le stated that the company aims for STRC to trade between $99 and $100 over time and plans to repurchase the stock in a regular, disciplined manner.

The capital allocation decisions occur against a backdrop of an ongoing dispute with MSCI. In early September 2026, Michael Saylor and CEO Phong Le asked MSCI to withdraw an index rule that could remove Strategy from its global benchmarks, arguing the rule unfairly targets the company. Losing index inclusion could reduce automatic demand for MSTR from passive funds that track MSCI benchmarks.

Investors are now watching for a return to Bitcoin buying, further use of the remaining $1.19 billion STRC authorization, or new cash from stock sales or convertible debt. If Strategy continues to repurchase preferred stock instead of buying Bitcoin, its profile may shift from a Bitcoin accumulation strategy to a capital-structure play.