Strategy has further increased its Bitcoin holdings by 267 BTC, raising its total Bitcoin position to a record 848,517 BTC; meanwhile, the company repurchased $193 million in STRC preferred shares and increased its authorized limit for digital credit securities repurchases to $3 billion.
Key points:
- The strategy added 267 BTC, raising its disclosed Bitcoin holdings to a record 848,517 BTC.
- Executive Chairman Michael Saylor also disclosed that, alongside the company's latest Bitcoin purchase, it repurchased $193 million in STRC preferred shares.
- The company has increased its authorization for repurchasing digital credit securities from $2 billion to $3 billion.
- Strategy reported that, as of October 18, the company held approximately $5.3 billion in assets, down from the $5.5 billion disclosed a week earlier.
- Saylor updated the credit assumptions to include a Bitcoin reference price of $81,468 and an annualized volatility of 40%.
According to an announcement by Executive Chairman Michael Saylor on October 19, the company held approximately $5.3 billion in assets as of October 18.
The latest disclosure follows Saylor’s weekend hint that another Bitcoin purchase is imminent, continuing the company’s usual practice of announcing treasury changes at the start of each week. This indicates that Strategy is simultaneously allocating capital toward both Bitcoin accumulation and preferred share repurchases.
This new Bitcoin purchase is smaller than several acquisitions made earlier this year by Strategy, but it still pushes the company’s disclosed holdings to a new high. Larger financial transactions involving STRC have become an important part of Strategy’s capital management activities.
The strategy's Bitcoin holdings have reached a new record.
The strategy's latest purchase of 267 BTC increased its holdings from 848,250 on October 11 to 848,517 on October 18. The disclosed increase aligns with the number of bitcoins Michael Saylor stated the company purchased during the latest reporting period.
Based on the latest disclosed holdings and Bitcoin’s fixed supply cap of 21 million coins, the company currently holds approximately 4.04% of Bitcoin’s maximum supply. This cap will not be reached until the future, as mining rewards continue to be released over time.
The last weekly Bitcoin purchase occurred between October 5 and October 11, during which the company bought 250 BTC for $21.5 million. The company’s disclosure on October 12 showed an average purchase price of $86,194 per BTC, including fees and expenses.
In the earlier purchase, approximately $21 million was funded by the sale of MSTR common shares, and an additional $500,000 came from existing U.S. dollar cash. The company disclosed that its cumulative cost basis for Bitcoin is approximately $64 billion, corresponding to an average cost of $75,444 per Bitcoin.
Saylor's statement on October 19 did not disclose the execution price of the newly purchased 267 BTC or the source of funds. Due to the lack of detailed transaction breakdowns, it is not possible to precisely calculate the new cumulative acquisition cost and average purchase price.
Before Monday's announcement, crypto.news reported Saylor's weekend hint, when the company's most recently confirmed balance was 848,250 BTC. His subsequent statement confirmed the number of additional bitcoins acquired in the next reporting period.
As the company buys, sells, and reallocates assets through its treasury operations, Strategy's Bitcoin holdings have been changing. The latest disclosure confirms the updated balance but does not specify which wallets hold the newly acquired Bitcoin.
The total STRC buyback amount has increased by another $193 million.
At the same time as purchasing Bitcoin, Saylor stated that Strategy has repurchased approximately $193 million in variable-rate Series A perpetual Stretch preferred shares, identified by the ticker STRC.
This transaction follows the $192.4 million STRC repurchase disclosed on October 12, during which the company repurchased 1,932,145 preferred shares. Combined with these two weekly disclosures, Strategy has disclosed repurchases totaling approximately $385.4 million.
These figures cover two different reporting periods and should not be interpreted as the company’s total expenditures on STRC since the program’s inception. Strategy has previously repurchased preferred shares under the same capital management framework.
STRC is a perpetual preferred security with a par value of $100 per share and a variable dividend rate. Its market price may trade below par value, providing Strategy with the opportunity to repurchase outstanding shares at a discount.
According to its STRC buyback policy in July, the company stated that repurchasing discounted shares could reduce future preferred dividend obligations. Management noted that the buybacks will depend on trading prices, available liquidity, and capital required to fulfill other obligations.
This strategy differs from buying Bitcoin, as STRC buybacks reduce the number of preferred shares outstanding. Buying Bitcoin adds assets to the company’s treasury, while preferred share buybacks affect Strategy’s capital structure and future distribution obligations.
An October analysis of treasury buybacks examined how Bitcoin treasury companies allocate funds between their cryptocurrency holdings and their own securities. Strategy’s latest announcement continues this pattern, revealing that the amount disclosed for preferred share buybacks is significantly higher than the amount separately disclosed for Bitcoin purchases.
The October 19 statement did not provide the number of STRC shares repurchased or the average purchase price. Therefore, without additional transaction records, the $193 million figure cannot be used to determine how many shares were repurchased.
The strategy increases the digital credit repurchase cap to $3 billion.
Saylor also announced that Strategy has increased the size of its digital credit securities repurchase program from $2 billion to $3 billion.
This announcement means the authorized amount for the program has increased by $1 billion, a 50% increase over the previous limit. This does not mean the company has completed $3 billion in buybacks, nor does it indicate that the company will immediately utilize the full authorized amount.
The digital credit securities of Strategy include multiple classes of preferred shares, such as STRC, STRF, STRK, and STRD. Each class has different allocation terms, providing investors with varying forms of exposure to the company’s financing structure.
In June, the company launched its initial digital credit repurchase framework, accompanied by policies regarding U.S. dollar reserves, preferred dividend distributions, and potential Bitcoin sales. The board’s capital management framework permits Strategy to repurchase eligible securities through market purchases, negotiated transactions, and other permitted methods.
Under this framework, the company stated that discounted repurchases can reduce the dividend requirements for preferred shares. This authorization does not obligate the company to purchase a fixed amount of securities; management retains full discretion over the timing and volume of transactions.
Prior to the latest announcement, Strategy had already expanded the program, increasing the previously authorized amount to $2 billion. Saylor’s statement on October 19 raised the total nominal size of the program to $3 billion, though the remaining unused amount is subject to the most recent company filings.
The company's listed sources of funds for repurchases include available cash, stock sales, and certain permitted Bitcoin sales. The actual funding arrangements for the latest $193 million repurchase were not disclosed in Saylor's message.
USD assets decreased; Strategy adjusts treasury
According to the Strategy report, as of October 18, the company held approximately $5.3 billion in assets, compared to about $5.5 billion a week earlier.
The earlier disclosure on October 12 split these holdings into $4.88 billion in U.S. dollar reserves and $640.5 million in other U.S. dollar cash, totaling approximately $5.52 billion.
The new figure of $5.3 billion represents a decrease of approximately $220.5 million from the previous unrounded balance. Since Saylor provided only the rounded latest amount, the exact magnitude of the change cannot be precisely determined without a full updated balance sheet.
Dollar reserves are used to support preferred stock dividends and interest obligations, while other cash may be used for additional treasury purposes. The distinction is important because the company faces restrictions on using designated reserves for preferred stock repurchases.
The October 12 document showed that the company could fund Bitcoin purchases through the sale of common stock and by using existing cash. The October 19 announcement did not specify whether the decline in dollar-denominated assets was entirely due to STRC repurchases, Bitcoin purchases, or other transactions.
The recently disclosed USD asset balance remains substantial but is lower than last week’s level. Strategy has not yet provided a verified breakdown of reserves and unrestricted cash as of October 18.
Saylor updates the Bitcoin credit assumption for STRC
In another post on October 19, Saylor announced updated data on Strategy's internal credit framework.
He reported a dollar duration of 3.4 years and an STRC Bitcoin credit spread of 53 basis points, with assumptions including an annualized Bitcoin appreciation rate of 10%, a Bitcoin volatility of 40%, and a reference price of $81,468.
These data come from Strategy’s proprietary credit calculations and should not be confused with evaluations by independent rating agencies. The company’s credit metrics documentation explicitly states that its Bitcoin-related credit measurements are for illustrative purposes only and do not constitute traditional credit ratings.
Saylor's assumptions are based on modeled annual returns and volatility, not guarantees of Bitcoin's future performance. Changing the reference price or market assumptions will yield different results within this framework.
A week ago, the Strategy report showed a dollar duration of 3.5 years, a STRC Bitcoin credit metric of 52 basis points, and a Bitcoin reference price of $82,252. The latest duration is 0.1 year lower than before, while the credit metric is 1 basis point higher.
The company plans to release its third-quarter 2026 financial results after the U.S. financial markets close on October 29. A video presentation has been scheduled for October 8 at 5:00 p.m. Eastern Time.