Michael Saylor’s Strategy, the largest corporate Bitcoin treasury, has unexpectedly paused its weekly cryptocurrency acquisitions to redirect capital toward its own shares. Between August 31 and September 7, the company repurchased 1.8 million of its preferred STRC shares for $176.3 million, signaling a strategic pivot in its aggressive accumulation playbook.
According to a recent filing with the US Securities and Exchange Commission, Strategy also doubled the size of its Digital Credit Securities Repurchase Program to a massive $2 billion. Because of the pause in buying, the company's total cryptocurrency reserves remain at 845,050 Bitcoin, which were acquired for a total of $63.6 billion at an average purchase price of $75,412 per coin. This halt follows a brief resumption of buying just last week, when Strategy made a $370 million Bitcoin purchase - its first since mid-June.
The decision to buy back stock comes as STRC, one of the primary vehicles Strategy uses to fund its Bitcoin purchases, faces market pressure. In premarket trading on Tuesday, STRC hovered around $97.70, representing a 2.3% discount from its intended $100 par value, while the company’s Nasdaq-traded MSTR common stock dropped more than 3%. Trading below par restricts the firm's ability to raise capital through STRC sales and could force management to further increase dividend rates. Previously, on June 29, Strategy unveiled a capital framework allowing Bitcoin sales to fund dividends, simultaneously raising the annual dividend rate on STRC preferred stock to 12%.
Challenger Treasuries Accelerate Purchases
While Strategy temporarily stepped back, rival corporate treasuries aggressively bought the dip. Strive, currently the fifth-largest corporate Bitcoin holder, acquired 1,375 Bitcoin for $109 million at an average cost of $79,281. This brings Strive's total reserves to 24,531 Bitcoin, as confirmed by CEO Matt Cole on Monday. Despite the acquisition, Strive's Nasdaq-traded ASST shares fell more than 2.5% ahead of Tuesday's open, though the stock has more than doubled over the past month.
Meanwhile, France-listed Capital B executed a $25 million Bitcoin acquisition - its largest in nearly a year. This aggressive move allowed the French firm to surpass the H100 Group among publicly traded cryptocurrency holders, highlighting a growing appetite for digital assets among international corporations.
The Hidden Cost of Yield-Driven Treasuries
Strategy’s sudden pivot from buying Bitcoin to repurchasing its own discounted STRC stock exposes the structural vulnerability of using debt and preferred shares to fund crypto accumulation. By doubling its repurchase program to $2 billion while STRC trades below its $100 par value, the company is essentially forced into defense mode to protect its capital-raising engine.
If the stock continues to trade at a discount, the heavy 12% dividend burden could eventually compel Strategy to execute the very action its June 29 framework prepared for: selling its underlying Bitcoin reserves to cover dividend payouts. Such a move would fundamentally alter its reputation as a pure-play accumulation vehicle, shifting it from a relentless buyer to a potential source of market sell pressure.
