Strategy allocates more funds to STRC share repurchases than Bitcoin acquisitions
Strategy's Bitcoin holdings reached 848,000 as the company executed STRC buybacks and announced plans to convert four preferred stock series to daily dividend distribution schedules.
In a notable shift in capital deployment, Michael Saylor's Strategy allocated more than six times its typical weekly Bitcoin acquisition budget toward repurchasing shares of one of its preferred stock offerings during the past week.
The company acquired 334 Bitcoin (BTC) for a total of $28.7 million during the Monday through Sunday period, pushing its total holdings to precisely 848,000 BTC, as disclosed in an 8-K form filing submitted Monday to the US Securities and Exchange Commission.
During that same seven-day window, Strategy bought back approximately 1.77 million shares of its STRC preferred stock, deploying $176.3 million in the process.
This capital distribution strategy emerges as Strategy announced plans to pursue shareholder authorization for a comprehensive restructuring of dividend distribution mechanisms across its suite of preferred stock securities, underscoring the increasingly significant function these preferred instruments play in financing and overseeing its Bitcoin treasury operations.
Strategy pushes preferred stocks toward daily payouts
In a separate proxy filing submitted Monday, Strategy is requesting approval to distribute regular dividends on STRC, STRF, STRK and STRD on every business day, which would replace the current twice-monthly payment structure for STRC and the quarterly distribution schedule for the remaining three preferred stock series.
According to the company's statement, the proposed changes would maintain existing dividend rates and overall payment commitments unchanged, but the new structure could reduce reinvestment timing gaps while enhancing both liquidity and price stability for these securities.
The shareholder vote on this proposal is scheduled for a special meeting on Oct. 28. Should the measure receive approval, STRC's transition to the daily payment schedule would commence in November, with STRF, STRK and STRD implementing their daily dividend schedules beginning in January.