Strategy Halts Bitcoin Buying After Five-Week Streak, Retires $205M of STRC Preferred
MSTR sits 75% above its 52-week low of $81.81.
Summary
Strategy bought no bitcoin in the week of Oct. 19-25, snapping a five-week acquisition streak, and holdings sit unchanged at 848,517 BTC. Instead it spent about $204.9 million of its USD Cash reserve to repurchase 2.07 million STRC preferred shares, leaving $242.4 million in USD Cash and $4.83 billion in the USD Reserve as of Oct. 25. The shift matters because the entire thesis has been continuous accumulation funded by capital markets; a pause plus preferred retirement suggests capital is being redirected to shoring up the capital structure rather than buying more BTC. It comes as MSCI moves to adopt rules against 'non-operating' companies that could exclude MSTR from its indexes, which would make future equity raises harder. The stock fell 6.9% last week to $146.02 while bitcoin slipped 1.1% and briefly traded below $80,000 on Monday. Q3 results, with the company already guiding to a $20.91 billion digital asset gain, will show how the balance sheet and any resumed buying program look.
At the time of this announcement, MSTR was trading at $143.20 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $61.6B. The 52-week trading range was $81.81 to $299.80. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: The Block.