Michael Saylor’s Strategy last week spent more than six times its weekly Bitcoin buying budget on its repurchases of one of its preferred stocks.
Strategy bought 334 Bitcoin (BTC) for $28.7 million between Monday and Sunday, bringing its holdings to exactly 848,000 BTC, according to a Monday 8-K form filing with the US Securities and Exchange Commission.
Over the same period, Strategy repurchased about 1.77 million shares of its STRC preferred stock for $176.3 million.
The capital allocation comes as Strategy said it will seek shareholder approval to overhaul dividend payments across its preferred-stock lineup, highlighting the growing role of its preferred securities in funding and managing its Bitcoin treasury strategy.
Strategy pushes preferred stocks toward daily payouts
Strategy filed a separate proxy Monday seeking approval to pay regular dividends on STRC, STRF, STRK and STRD every business day, replacing STRC’s twice-monthly schedule and quarterly payments on the other three preferred stocks.
The company said the proposal would not change dividend rates or its overall payment obligations, but could shorten reinvestment delays and improve liquidity and price stability.
Shareholders will vote on the proposal at a special meeting on Oct. 28. If approved, STRC’s daily schedule would start in November, while STRF, STRK and STRD would follow in January.
Bitcoin holdings grew just 0.2% in Q3 amid sales
Strategy’s Bitcoin holdings rose just 0.2% during the third quarter, as sales offset most of its purchases during the period.
The company acquired 7,218 Bitcoin during the quarter while selling 5,553 BTC, leaving it with 847,666 BTC at the end of September, up from 846,000 BTC at the end of June.
The quarterly increase marked a sharp slowdown in net accumulation from Q2, when Strategy’s Bitcoin holdings increased nearly 11% from 762,099 BTC to 846,000 BTC.
Q3’s net increase of 1,666 BTC was worth about $143 million at the time of publication. By comparison, Strategy spent about $1.38 billion repurchasing STRC during the quarter.
Related: Bitcoin treasuries may struggle to match Strategy, says Ammous
Strategy also reported a preliminary $20.91 billion gain on its digital assets for the quarter, largely reflecting an increase in the fair value of its existing Bitcoin holdings.
Strategy’s MSTR shares were up 2.9% in premarket activity on Monday at $164.60, while STRC traded near its $100 stated amount at $99.45, according to Yahoo Finance. Bitcoin was trading around $86,063 at the time of publication, according to CoinGecko.
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