Strategy, the publicly traded digital-asset company formerly known as MicroStrategy, purchased 334 Bitcoin for $28.7 million between October 1 and 4, marking its smallest quarterly acquisition of the year despite a $20.91 billion unrealized gain on its holdings during the third quarter.
The purchase, disclosed in an SEC filing on October 5, brought Strategy’s total Bitcoin holdings to 848,000 BTC at an average cost of $75,440.70 per coin. The 334 BTC acquisition price of $85,838.80 per coin reflected a 2026 low for quarterly purchase volume, down sharply from a June low of 520 BTC.
Strategy financed the purchase through multiple channels: the sale of 92,894 MSTR common shares for $15.7 million, cash supplied of $13 million, and the repurchase of its own preferred securities. Between September 28 and October 4, the company spent $176.3 million repurchasing 1.77 million STRC preferred shares, bringing total STRC repurchase spending to $1.45 billion since the program’s authorization was doubled to $2 billion in September.
The Bitcoin holdings generated outsized paper gains in Q3. “Every $1,000 increase in BTC price during the third quarter represented a $848 million fair market value gain to Strategy,” said Chaitanya Jain, head of investor relations. Strategy’s Bitcoin holdings carried a fair-market value of $70.82 billion as of September 30, against an aggregate acquisition cost of $63.97 billion, reflecting the 43% quarterly Bitcoin price rally.
Preferred Stock Funding Model Faces Shareholder Vote
Alongside its Bitcoin accumulation, Strategy is deepening its reliance on preferred securities as a capital-raising mechanism. The company is proposing daily dividend accruals on STRC and three other US-listed preferred securities, to be voted on by MSTR common shareholders on October 28. If approved, the change would take effect November 1, with the first payment date under the revised schedule set for November 2.
STRC has traded below its $100 stated amount for nearly 100 consecutive trading sessions despite multiple interventions. The company increased the annual dividend rate to 12%, shifted dividend payments from monthly to semi-monthly in June, and authorized systematic repurchases. Strategy’s stated objective is for STRC to trade between $99 and $100 over time.
The company argues that daily dividend accruals could reduce price fluctuations, improve liquidity, and attract additional demand for the preferred security. Only MSTR common shareholders will vote on the amendment; STRC holders will not participate in the vote.
As of the filing date, $547.2 million remained available under the $2 billion repurchase authorization for STRC.
