Strategy Put $176.3 Million Into Its Own Preferred Stock Instead of Bitcoin, With Its Last BTC Purchase Already Underwater

Strategy skipped Bitcoin again and quietly funneled hundreds of millions into its own preferred stock instead, raising a question that should unsettle shareholders: is this still a Bitcoin company, or has something shifted in how management really thinks about capital?

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Strategy (NASDAQ: MSTR | MSTR Price Prediction) has bought no Bitcoin (CRYPTO: BTC) this week, instead spending $176.3 million buying back its own preferred stock, according to a September 8 filing signed by general counsel Thomas C. Chow. MSTR trades at $134, down 1.57% today.

The move follows a roughly 10-week pause in Bitcoin purchases, during which Strategy sold about 7,000 BTC at $59,000 to $64,000 before buying 4,603 coins at an average of $80,318 between August 24 and 30. Now, with no new Bitcoin purchases and $176.3 million directed to its preferred stock, is Strategy changing how it deploys capital?

Strategy Put $176.3 Million Into STRC

Strategy directed the entire $176.3 million toward STRC, its variable-rate perpetual preferred stock. Unlike common stock, a perpetual preferred has no maturity date and pays a floating dividend. STRC is designed to trade around its $100 par value, and Strategy raised its annualized dividend rate from 11.50% to 12.00% to help keep the security near that level.