Strategy Allocated $888 Million for Stock Buybacks

From September 14 to October 18, Strategy Company spent approximately $888 million on repurchasing its preferred shares, while only $290 million was allocated for purchasing Bitcoin (BTC). During this period, Strategy acquired 3,466 Bitcoins, although the volume of purchases significantly decreased: weekly purchases fell from 1,665 Bitcoins at the end of September to 267 by mid-October. Consequently, the company's cash reserves shrank from $1.3 billion to $447.3 million, confirming changes in its financial strategy.

Amid this, large buyers (whales) accumulated 88,987 Bitcoins, which significantly exceeds Strategy's acquisitions. The company's real ability to increase Bitcoin purchases depends on its financing strategy related to share buybacks. Strategy has already increased its share buyback authorization to $3 billion, of which approximately $1.84 billion has been used so far. This situation limits the company's ability for further investments in Bitcoin, as the need to pay dividends may also put pressure on reserves.

Currently, STRC shares are trading at $99.20 per share, offering a 12% annual dividend. This circumstance makes preferred shares attractive to investors focused on stable income, but at the same time, it may confirm serious limitations in future Bitcoin purchasing opportunities. Reserves on exchanges slightly increased from 2.67 million to 2.68 million Bitcoins, indicating the presence of supply. It is also worth noting that after Bitcoin's recovery on October 21, MSTR shares rose by 7.54%, while Bitcoin added only 2.07%. This indicates that investors are more actively responding to Bitcoin price changes through Strategy Company's assets rather than directly through purchasing BTC.