Strategy Pauses Bitcoin Purchases, Spends $204.9M on Preferred Share Repurchases

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Bitcoin news broke as Strategy halted Bitcoin purchases for the week ended October 25, 2026, and spent $204.9 million on preferred share repurchases. The firm held 848,517 BTC and used USD Cash to fund the buyback of 2,068,459 STRC shares at $99.06 each. The move could cut annual dividends by $24.8 million. USD Cash dropped to $242.4 million from $447.3 million a week earlier. Bitcoin analysis suggests the shift reflects capital reallocation.

Strategy paused Bitcoin purchases for the week ended October 25, spending $204.9 million to repurchase preferred shares instead. Executive Chairman Michael Saylor announced the move on X as Bitcoin traded near $80,000.

An October 26 SEC filing showed that Strategy held 848,517 BTC without buying or selling any during the week. The company used its USD Cash balance to fund the repurchases.

STRC Buybacks Could Cut Dividend Costs

Strategy repurchased 2,068,459 STRC preferred shares at an average price of $99.06, below their $100 stated value. The shares carry a 12% annual dividend rate.

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The repurchased shares had a combined stated value of about $206.85 million. Retiring them could reduce annual dividend payments by approximately $24.8 million, assuming the rate remains unchanged and the shares would otherwise remain outstanding.

Cash Reserves Decline

Strategy reported $4.83 billion in USD Reserve and $242.4 million in USD Cash. Its cash balance fell from $447.3 million a week earlier.

Across three reporting periods, Strategy spent $590.4 million on STRC repurchases, compared with $43.6 million to purchase 517 Bitcoin.

Bitcoin subsequently fell below $80,000 following a weekend selloff. Strategy’s latest filing showed a shift toward preferred-share repurchases rather than additional Bitcoin purchases.

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