Strategy repurchased 1,420,467 shares of its STRC preferred stock for $139.3 million in the week ending September 13, according to an 8-K filing with the Securities and Exchange Commission. The company spent no money on Bitcoin during that period, leaving its holdings at 845,050 BTC for a second consecutive week.
The repurchase amount marked a pullback from the $176.3 million Strategy spent the previous week, a period when its board doubled the authorization for its digital credit securities repurchase program to $2 billion. All funds for the buyback came from USD Cash, the liquidity pool management uses for buybacks, dividends and Bitcoin purchases. Strategy did not repurchase any shares of its STRF, STRK or STRD preferred stock, nor did it buy back any MSTR common stock.
As of September 13, Strategy held $5.10 billion in its USD Reserve, which backs preferred dividends and interest payments, and $1.30 billion in USD Cash. The USD Cash balance dropped from $1.44 billion the prior week, a decrease that aligns with the $139.3 million spent on STRC. Under the $2 billion digital credit securities program, approximately $1.05 billion remains available, while a separate $1 billion authorization for MSTR stock remains untouched.
Strategy’s Bitcoin holdings were acquired for a total of $63.73 billion at an average price of $75,412 per coin, including fees. According to the company’s credit dashboard, the BTC Credit spread for STRC sits at roughly 57 basis points. This metric assumes a 10% annualized Bitcoin return, 40% volatility and Bitcoin priced near $77,266. A basis point represents 0.01%, making the current spread equivalent to 0.57%. Strategy defines its investment-grade threshold as any spread under 150 basis points, or 1.5%.
The dashboard also lists Strategy’s aggregate Bitcoin reserve at $66.2 billion. The blended breakeven annualized return is 2.48%, with a duration of 40.3 years. This duration indicates the time horizon required to cover costs through Bitcoin growth, providing a buffer against short-term price fluctuations.
The slowdown in buybacks occurs while Strategy awaits a decision on an MSCI proposal that could remove "non-operating companies" from global equity benchmarks. Feedback on the consultation closes September 30, with a decision due October 16. That date may impact passive fund flows tied to Strategy’s index weighting.