Strategy Increases Buyback Limit for Preferred Shares to $3 Billion

Strategy acquired 267 BTC for $22.1 million and repurchased preferred shares of STRC for $193.1 million, the company announced on Monday. The purchase took place from October 12 to 18 at an average price of $82,900 per coin, including fees, compared to $86,194 for 250 BTC the previous week. Strategy now holds 848,517 BTC, acquired for $64.02 billion at an average price of $75,446 per coin.

The board of directors increased the limit of the digital credit securities repurchase program – preferred shares – from $2 billion to $3 billion; as of October 18, $1.16 billion remained in the program. The BTC purchase was primarily funded by selling common shares of MSTR: $22 million from the sale of 140,872 shares through the ATM program plus $0.1 million in cash. Preferred shares were not sold during the week.

1,938,780 shares of STRC were repurchased for $193.1 million from USD Cash – funds set aside for general purposes, including BTC purchases. Another $45.5 million from USD Reserve went to dividends. As of October 18, the USD Reserve stood at $4.83 billion compared to $4.88 billion the previous week, and USD Cash was $447.3 million compared to $640.5 million. The total USD Assets amounted to $5.3 billion.

The previous week, Strategy repurchased $192.4 million STRC, earlier $176 million, while simultaneously buying $29 million BTC and reflecting a third-quarter increase of $21 billion. In the last week of September, it repurchased $151.7 million STRC, bringing reserves to a then-record 847,666 BTC. A separate common stock repurchase program for MSTR has $1 billion remaining.

The company also faces potential exclusion from MSCI indexes. On October 15, the provider finalized a rule stating that "non-operating companies" – those whose balance is determined by a single asset – will not be included in the Global Investable Market Indexes from the close of November 30. MSCI will publish the list of affected companies on November 11; exclusion will force index-tracking funds to sell their shares. Saylor urged MSCI to abandon the rule, calling it "discriminatory."