bitcoinFeature
Strategy Pauses Bitcoin Buying, Spends $205M Buying Back STRC
The firm's USD Cash balance dipped to $242.4 million following its largest weekly buyback of STRC in over a month.
Strategy halted its Bitcoin acquisitions last week, marking its first such pause since mid-September. Furthermore, it did not sell any shares through its at-the-market offering program, according to an SEC filing.
Instead, the company utilized $204.9 million from its USD Cash to repurchase 2,068,459 shares of its variable-rate preferred stock, an increase from the $193.1 million spent the week before.
Strategy still maintains 848,517 BTC, which it originally acquired for a total of $64.02 billion, averaging $75,446 per coin.
The pause in Bitcoin buying occurred as Strategy dedicated funds to the STRC repurchase, which was the biggest of those weeks, rising from $192.4 million the week prior.
The firm's USD Cash, which funds general operations including Bitcoin purchases, dropped from $447.3 million to $242.4 million.
This buying spree follows smaller recent purchases; the previous week saw Strategy acquire 267 BTC for $22.1 million, after spending $21.5 million on 250 BTC the week before that.
The decision to pause comes amid concerns about possible exclusion from MSCI's major equity indexes. MSCI set a rule on October 15 that disqualifies "non-operating companies," those dominated by one asset, from its Global Investable Market Indexes after November 30.
Why it matters
This shift in capital allocation shows the firm prioritizing its stock buyback over immediate BTC accumulation. Investors should watch if this pause signals a broader change in Strategy's investment strategy amid potential index exclusion risks.
