Strategy restarts coin accumulation while increasing support for STRC

Written by: Oluwapelumi Adejumo

Compiled by: Chopper, Foresight News

Strategy, led by Michael Saylor, has purchased Bitcoin for two consecutive weeks for the first time since June. The company had sold some Bitcoin earlier in the quarter and is now rebuilding its position.

On September 28, the company disclosed that it spent $142.7 million to acquire 1,665 Bitcoins in the week ending September 27, at an average price of $85,681. This increase follows last week's buying activity, ending a three-month period without consecutive purchases. The scale of this purchase is approximately 75% higher than last week, indicating that after months of alternating buying, pauses, and intermittent selling, Strategy has increased its accumulation of Bitcoin.

Strategy's Bitcoin Holdings Reach Historic High

Previous sell-offs had caused Strategy's Bitcoin holdings to decrease net this quarter. However, the recent two purchases have reversed this trend, and with three trading days left in the third quarter, the company has net added 1,666 Bitcoins this quarter.

Bitcoin analyst Mark Harvey stated that Strategy has bought back all the Bitcoins sold this quarter and has increased its holdings, extending its record of consecutive quarterly net growth in Bitcoin to 24 quarters.

The new round of purchases has driven Strategy's Bitcoin holdings to a historic high of 847,666 Bitcoins, with a total investment of approximately $63.9 billion and an average holding cost of $75,437. Year to date, the company has accumulated 175,166 Bitcoins.

Strategy's Bitcoin holdings have grown from 38,250 Bitcoins in September 2020 to 847,666 Bitcoins as of September 28, 2026.

At current market prices, this batch of Bitcoins is valued at approximately $70.7 billion, resulting in an unrealized gain of about $6.75 billion compared to the overall acquisition cost, with an unrealized gain rate of 10.6%. Meanwhile, Strategy's related performance indicators show that the Bitcoin return year to date is -3.7%, with a decrease of 25,085 Bitcoins in unrealized gains, corresponding to a reported loss of about $2.1 billion; the quarterly unrealized gains decreased by 100,275 Bitcoins, corresponding to a loss of about $8.37 billion. (Note: The unrealized gains in BTC are a special accounting method used by Strategy, using BTC as the accounting currency to convert all company assets and liabilities into BTC, measuring the overall net BTC position of the company.)

Strategy funded this Bitcoin purchase through an at-the-market (ATM) issuance of common stock. Last week, the company sold approximately 1.47 million shares of MSTR stock, raising $246.2 million in net funds, with $18.84 billion remaining in the issuance quota.

MSTR analyst Zaid previously expected that the company would invest $250 million to $300 million in Bitcoin that week, about twice the actual amount invested. He believes the actual purchase amount is low, reflecting management's choice to allocate funds elsewhere rather than utilizing more of the company's cash reserves. This allocation of funds is towards STRC.

Increasing Support for STRC

Last week, Strategy spent $151.7 million to repurchase approximately 1.53 million shares of STRC, slightly exceeding the $142.7 million spent on Bitcoin purchases.

The funding for this STRC repurchase came from $103.5 million from MSTR equity fundraising, with an additional $48.1 million from the company's dollar cash account. The company also separately allocated $22.1 million from dollar reserves to pay preferred stock dividends. As of September 27, Strategy held approximately $1 billion in general cash, along with $5 billion in independent dollar reserves.

Zaid noted that last week's STRC repurchase accounted for 18.9% of the total trading volume of the security, a decrease from 22.8% the previous week. He considers this a slight improvement, indicating that Strategy no longer needs to absorb such a large proportion of market sell orders to support the product's price.

The support operations are showing initial results. The STRC price has risen to about $99, just a step away from its set par value of $100 after trading below par for several months. Since May, STRC has been under pressure, dropping to about $71 during the significant Bitcoin decline in June. Subsequently, Strategy initiated a $2 billion repurchase plan, investing over $1 billion to repurchase preferred stock to stabilize the product's price.

STRC currently has an annualized dividend yield of 12% and adjusted its dividend frequency from monthly to semi-monthly in June. Now, Strategy proposes to further adjust the mechanism to enhance the product's appeal to income-oriented investors.

The company is scheduled to hold a special shareholder meeting on October 28 to propose adjustments to the dividend rules for its four publicly listed preferred stocks (STRC, STRF, STRK, STRD). According to the proposal, STRC will switch first, with holders registered on November 1 receiving their first daily interest dividends on November 2.

Daily interest dividends can shorten the waiting time for investors to receive returns and reinvest, while alleviating price fluctuations caused by low-frequency dividends. Strategy stated that maintaining the STRC price close to the $100 par value is one of the goals of this mechanism reform.

Therefore, there are two indicators worth noting at the end of this quarter. Strategy has resumed consecutive purchases of Bitcoin and still has substantial cash and equity issuance capabilities; meanwhile, STRC's price has risen to within 1% of par value after several months of support.

Subsequent disclosures will reveal two uncertainties. First, whether management can continue the consecutive Bitcoin purchases into the third week; second, whether the combination of repurchases and the proposed daily dividend plan can ultimately drive STRC back to par value without requiring Strategy to absorb a large volume of market sell orders.