Strategy's $176.3 million STRC buyback removes about $21 million a year of 12% dividends
Strategy spent $176.3 million repurchasing STRC preferred stock in the week to Oct 4, against $28.7 million for 334 bitcoin. The shares cost about $99.60 each, and retiring them cuts roughly $21 million a year of 12% dividends.
The Investor · Invest desk
Key figures: the STRC buyback was about 6.1 times the spend on new bitcoin. Strategy spent $28.7 million on 334 bitcoin, repurchased about 1.77 million STRC shares, and paid an average of about $99.60 per share.
| Figure | Value | Note | Claim |
|---|---|---|---|
| STRC buyback vs. spend on new bitcoin, about | 6.1 times | 11 | |
| Spent on 334 bitcoin | $28.7 million | 1 | |
| STRC shares bought, about | 1.77 million shares | 3 | |
| Avg price per share, about | $99.6 | 12 |
What happened
- Strategy's Oct. 5 Form 8-K put its holdings at exactly 848,000 BTC after the week's purchase.
- STRC is a variable-rate perpetual preferred with a $100 stated amount and a 12% annualized dividend.
- Independent analyst Shanaka Anslem Perera noted that Strategy raised $5.41 billion from common shares in Q3 and ended it with only 1,666 more BTC than at the end of June.
Why it matters
- What it costs cost At the week's average of about $85,900 a coin, bitcoin would have to reach roughly $96,200 within a year to match the 12% a retired STRC share stops paying, for as long as the rate holds.
- What it limits constraint STRC's price now sets part of the cash call: in any week it trades under $100, the stated policy has Strategy buying, and that cash is unavailable for bitcoin.
- Who's exposed exposure Common holders rank behind preferred and debt, per Perera, so they gain the dividend saving only if the buyback was not funded by new share sales; the reports do not say how it was paid for.
Next story · Invest · 4d ago
Strategy puts nearly nine dollars into retiring STRC for every dollar of new bitcoinConfirmed8 publishers
The week's split is lopsided: bitcoin took 14.0% of the $205.0 million Strategy spent across the two uses [14], and the buyback ran 6.1 times the bitcoin purchase [11]. Whether the preferred is crowding out bitcoin depends on how the buyback is triggered. Strategy has said it will support STRC when it trades below par and scale back purchases as the price approaches that level [10]. The $176.3 million bought about 1.77 million shares [3], an average of $99.60 a share [12], or 0.4% under the $100 stated amount [15].
We think the view that Strategy's cash is going to its 12% obligation is true of this week and unproven for the quarter. Independent analyst Shanaka Anslem Perera wrote that Strategy's filings "allocate 9.5% of the raise directly to bitcoin purchases. Other disclosed uses included a dollar reserve, cash, dividends and preferred-share buybacks." [5] On a $5.41 billion raise, 9.5% is about $514 million [18], which leaves $4.9 billion for the other uses [19].
Perera does not read that as a halt. He said: "That does not mean they stopped buying BTC. Cash retained can fund later purchases, and strengthening the balance sheet can benefit shareholders." [6]
Saylor posted "There's always room for more orange" on X [8], and the next 8-K will show whether it meant a bigger bitcoin purchase. If that filing shows bitcoin buying above the repurchase total while STRC is still near par, the lopsided week was timing and our view is wrong. If repurchases still outrun bitcoin purchases at that price, the 12% obligation is taking the allocation.
What to watch
- STRC's price against its $100 stated amount: the buyback policy tapers as it nears par.
- Any change to the variable dividend rate from 12%, which would change the $21.2 million annual saving.
- The next Strategy 8-K: whether bitcoin purchases exceed the STRC repurchase line.
Information, not investment advice. This story is general information about companies and markets, drawn from cited reporting. It is not a recommendation to buy, sell or hold any security; check the cited sources before acting.
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What the record supports and how the coverage leans. The claims behind it follow.
Reality
- Evidence70
- Adoption
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- Hype gap+15
- Incentives55
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Claim ledger
Ranked by verification strength, evidence, and original report placement.
- [1]
Strategy bought 334 Bitcoin for $28.7 million between Sept. 28 and Oct. 4.
- [2]
The purchase brought Strategy's holdings to exactly 848,000 BTC, according to its Oct. 5 Form 8-K.
- [3]
Over the same period, Strategy repurchased about 1.77 million shares of its STRC preferred stock for $176.3 million.
- [4]
Independent analyst Shanaka Anslem Perera noted that Strategy raised $5.41 billion from new common shares in the third quarter and ended the period with 1,666 more BTC than it held at the end of June.
- [5]
Perera wrote that Strategy's SEC filings "allocate 9.5% of the raise directly to bitcoin purchases. Other disclosed uses included a dollar reserve, cash, dividends and preferred-share buybacks."
- [6]
Perera said: "That does not mean they stopped buying BTC. Cash retained can fund later purchases, and strengthening the balance sheet can benefit shareholders."
- [7]
Perera wrote: "Cash counts too, while debt and preferred shares have claims ahead of common stock."
- [8]
Strategy chair Michael Saylor posted "There's always room for more orange" on X.
- [9]
STRC, Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock, carries a stated amount of $100 and a 12 percent annualized dividend.
- [10]
Strategy has previously indicated it will support STRC when it trades below par and scale back purchases as the price approaches that level.
- [11]
The STRC buyback was about 6.1 times the spend on new bitcoin.
- [12]
The average repurchase price was about $99.60 per STRC share.
- [13]
The repurchased shares would have paid about $21.2 million a year in dividends at the stated 12% rate.
- [14]
Bitcoin took 14.0% of the combined $205.0 million spent on bitcoin and STRC buybacks.
- [15]
The average repurchase price was about 0.4% below the $100 stated amount.
- [16]
The week's 334 BTC cost an average of about $85,900 per coin.
- [17]
Bitcoin bought at the week's average would need to reach about $96,200 within a year to match a 12% return.
- [18]
9.5% of the $5.41 billion third-quarter raise is about $514 million.
- [19]
The remainder of the raise after the 9.5% bitcoin allocation is about $4.9 billion.
Sources
2 independent publishers whose own reporting we read for this story.
Topics and entities
Entities
- STRC
- Strategy
- Shanaka Anslem Perera
- U.S. Securities and Exchange Commission
- Michael Saylor
- Bitcoin