MicroStrategy: 1,665 BTC acquired and repurchase of STRC shares

Two checks in the same week, only one for bitcoin. Strategy added 1,665 BTC to its treasury for $142.7 million and spent $151.7 million to buy back its own STRC shares. Michael Saylor's company therefore spent more money supporting one of its financing vehicles than purchasing the asset that underpins its entire strategy.

In contrast, the company raised $246.2 million in net proceeds by selling 1.47 million shares of MSTR stock, without issuing any preferred stock.

Key Points

1,665 bitcoins acquired at an average price close to $85,700, for a total of 142.7 million

The buyback of STRC shares mobilized 151.7 million, more than the bitcoins purchased over the same period

No preferred shares issued, but 246.2 million raised via the sale of MSTR shares over time

The balance sheet totals 847,665 BTC paid 63.95 billion, to which is added 6.02 billion in cash

Strategy adds 1,665 BTC paid $85,700 per unit

The 1,665 bitcoins were therefore paid around $85,700 per unit, more than $10,000 above the historical average cost of the portfolio ($75,437 per BTC). The counter reaches 847,665 BTC, acquired for $63.95 billion. Just over 4% of the 21 million bitcoin cap is now tied up on the balance sheet of a single Nasdaq-listed company. The pace has slowed down significantly: Strategy had absorbed 55,500 BTC in a single week in November 2024, for $5.4 billion.

To finance the operation, Strategy drew on its ATM (at-the-market) program, which allows it to sell shares over time directly on the market. The sale of 1.47 million MSTR shares brought in a net $246.2 million, or approximately $167 per share. This faucet only works under one condition. The mNAV, which relates market capitalization to the value of bitcoins held, must remain significantly above 1, otherwise each share sold dilutes the amount of bitcoin attached to each security instead of increasing it.

STRC, the preferred share that Strategy buys back below par

Let's talk about what's missing from this accounting week: no new preferred shares have been issued. Strategy went the other way, buying back 1,534,530 STRC shares for $151.7 million, or nearly $98.9 per share.

Called Stretch, this perpetual preferred stock pays a monthly dividend, the rate of which is adjusted by the board of directors to keep the price close to its par value of $100. The securities had been placed at 90 dollars when they were introduced in the summer of 2025. Resuming them at 98.9 dollars costs almost 10% more than the proceeds collected on issue, but avoids having to raise the coupon (which we recall that it runs in perpetuity and sets the price of any future refinancing).

The device has four floors. STRK, STRF, STRD and STRC each have their own dividend regime, and their holding on the stock market conditions Strategy's future access to capital. The balance sheet also shows $6.02 billion in assets denominated in dollars, a cushion that allows coupons to be honored without giving up bitcoins.