Strategy (formerly MicroStrategy) didn't buy any Bitcoin for the fifth consecutive week. Instead, the company used its cash to buy back $25 million of its own preferred stock (STRC) for the first time. The move comes as the firm continues to hold 843,775 BTC worth over $55 billion at current prices.
A shift in capital allocation
The buyback plan was approved earlier in July. Strategy says the repurchase is about balance-sheet strength, not a retreat from crypto. CEO Phong Le stated that Strategy intends to remain a long-term Bitcoin buyer. The company started buying Bitcoin in August 2020 and has spent around $63.9 billion on the asset, making it the largest corporate holder.
The ATM program keeps running
Between July 20 and July 26, Strategy sold 5,429,160 shares of MSTR common stock through its at-the-market program. That generated $544.5 million in net proceeds. The company has $3.75 billion in cash that will not be used to fund repurchases, according to a filing. So the buyback is coming from existing cash, not the ATM proceeds.
Stock performance and context
MSTR stock traded nearly 7% higher on the day of the announcement at approximately $98 per share. But it's down nearly 40% year-to-date. The company's Bitcoin holdings remain enormous — 843,775 coins — but the market has been punishing the stock as the crypto winter drags on. Strategy's decision to skip Bitcoin buys for five straight weeks is the longest pause since it started accumulating in 2020.
The next weekly disclosure will show whether Strategy resumes Bitcoin purchases or continues the new pattern of share buybacks.
