Strategy Inc., the bitcoin treasury company formerly known as MicroStrategy, lifted its holdings to a record 848,000 BTC after acquiring 334 bitcoin for $28.7 million between October 1 and October 4, according to a regulatory filing disclosed Monday, October 5. In the same reporting stretch, the company spent roughly $176 million buying back its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), according to Crypto Briefing.

The disclosure underscores a shift in how the Tysons Corner, Virginia-based firm is deploying capital: more of its cash is now flowing toward its preferred shares than toward new bitcoin. The company said the buybacks fall under a board-approved program aimed at managing the discount at which STRC trades, and the twin moves are shaping expectations in the market for the preferred stock.

Purchase details and funding mix

Strategy paid an average of $85,838.8 per coin for the latest tranche, according to the Form 8-K filed with the US Securities and Exchange Commission. The buy marks a third consecutive weekly acquisition, though at 334 BTC it is only about a fifth the size of the prior week's 1,665 BTC purchase, which cost $142.7 million at an average of $85,681 per coin between September 21 and September 27.

Funding for the new coins came from two sources. The company sold 92,894 shares of Class A common stock (MSTR) for net proceeds of $15.7 million and drew $13 million from its USD Cash pool, a dollar balance it keeps for general use. As of October 4, $18.83 billion in MSTR stock remained available for issuance and sale under the at-the-market program.

The latest acquisition continues a resumption of buying that began in late August after a summer pause, during which the company sold bitcoin under a board-authorized monetization program to bolster dollar reserves and support preferred dividends. The recent accumulation has been financed primarily through the at-the-market equity program and existing dollar balances, and no shares of its preferred series STRF, STRC or STRK were sold during either reporting period.

STRC buybacks outweigh bitcoin spending

The preferred-stock repurchases dwarfed the bitcoin outlay. Strategy bought back 1,033,168 STRC shares for $102.6 million between September 28 and September 30, then repurchased another 740,634 shares for $73.7 million between October 1 and October 4 — about 1.77 million shares for roughly $176.3 million in total, or about six times what it spent on bitcoin.

STRC pays investors a 12% annual dividend, and Strategy said last week it would maintain that rate until the stock trades steadily near its $100 issue price. The buyback funding came largely from the USD Cash account, which supplied $154.1 million, while $22.2 million came from interest earned on the company's cash, cash equivalents and short-term investments.

The company last sold STRC through its at-the-market facility in mid-May, raising nearly $2 billion, and remaining capacity has since held near $17.5 billion, indicating no further primary sales of that series. Common-stock proceeds have instead funded both bitcoin purchases and STRC repurchases as the preferred traded near par.

Third-quarter gain and treasury value

The filing also carried preliminary third-quarter estimates. Strategy pegged its gain on digital assets at $20.91 billion for the quarter ended September 30, with $1.88 billion in associated deferred tax expense and a digital asset carrying value of $70.82 billion. Executive Chairman Michael Saylor rounded the figure in a post, writing, Strategy reports a $21 billion gain on digital assets in Q3 2026.

The rebound reversed the position at the end of June, when the company's bitcoin was worth less than it paid. That recovery allowed Strategy to reverse a $4.12 billion deferred tax asset recorded as of June 30, after bitcoin's fair value moved back above its cost basis by September 30.

With bitcoin trading around $86,000 at the time of the disclosure, the 848,000 BTC treasury — assembled for a total of about $63.97 billion, or an average of $75,440.70 per coin — was worth roughly $73 billion, implying around $9 billion in paper gains. The stack represents more than 4% of bitcoin's fixed 21 million supply and remains the largest corporate holding by a wide margin.

Saylor also detailed the preferred stock's credit metrics in his post, adding, “USD Duration is 3.6 yrs and STRC's BTC Credit is 50 bps assuming 10% BTC ARR, 40% BTC Vol, and a BTC price of $84,289.”

Market reaction and Schiff criticism

In the market for STRC, the probability of the shares reaching $100 by December 31 has climbed since the announcement, with current pricing implying an 85.5% likelihood, up from 84% a day earlier and 79% a week prior, according to Crypto Briefing. Market observers said the dual approach of adding bitcoin while repurchasing preferred shares could influence STRC price movements, and the shift in odds appears to be a response to the financial maneuvers.

Not everyone reads the shift toward buybacks as strength. Gold advocate and longtime bitcoin skeptic Peter Schiff argued over the weekend that Strategy has lost its bitcoin-buying power because STRC no longer raises fresh money. “There's no way that he's going to be able to start selling more Stretch; that means he's not going to be able to raise money to really start buying more Bitcoin,” Schiff said, according to BeInCrypto.

The company maintains that its cash reserve and equity programs leave it positioned to keep buying, according to The Crypto Times. As of October 4, Strategy held a $4.88 billion USD Reserve earmarked for dividends and interest alongside $833.4 million in USD Cash, and $547.2 million remained available under its digital credit securities repurchase program.

Strategy's common stock fell 7.1% the prior week, closing Friday at $160.01, according to The Block's MSTR price page. The stock has rallied alongside bitcoin over the past month and is up more than 3% year-to-date after falling below $100 earlier this year, according to CoinGape.

What comes next for Strategy

Shareholders are set to vote on October 28 on a plan to pay daily dividends across the company's four preferred stocks, a decision arriving as more of Strategy's cash flows to those shares than to new bitcoin. Market participants will watch future announcements on both bitcoin acquisitions and STRC buybacks, since further large purchases or changes to the buyback approach could shift perceptions of where the preferred stock heads next.

Developments in the broader cryptocurrency market and statements from Strategy's leadership, particularly CEO Michael Saylor, could also move market odds. Saylor posted the firm's accumulation chart to X on Sunday with the caption More orange than ever, a pattern of weekend messages that has frequently preceded Monday filings.

Strategy's moves landed the same morning smaller rival Strive disclosed buying 2,000 BTC between September 28 and October 2 at an average of $84,422 each, lifting its holdings to 29,462 BTC. Strive's filing also showed it holds 505,000 STRC shares worth $50.2 million — the same preferred shares Strategy is now buying back.

Conclusion

Strategy's Monday filing established two parallel tracks: a third straight weekly bitcoin purchase that pushed its treasury to a record 848,000 BTC, and roughly $176 million in STRC buybacks under a board-approved program to manage the preferred stock's discount. The company also estimated a $20.91 billion third-quarter gain on digital assets and reported $4.88 billion in its USD Reserve as of October 4. The next concrete step is the October 28 shareholder vote on paying daily dividends across the firm's four preferred stocks, with further bitcoin purchases or buyback changes likely to shape expectations for STRC.

Frequently Asked Questions

How many bitcoin does Strategy hold after the October 2026 purchase?

Strategy holds 848,000 BTC after buying 334 bitcoin for $28.7 million between October 1 and October 4, 2026, at an average of $85,838.8 per coin. The treasury cost about $63.97 billion in total, or an average of $75,440.70 per bitcoin, and represents more than 4% of bitcoin's 21 million supply cap.

How much did Strategy spend on STRC buybacks last week?

Strategy spent roughly $176.3 million repurchasing about 1.77 million STRC preferred shares. That breaks down to $102.6 million for 1,033,168 shares between September 28 and September 30, and $73.7 million for 740,634 shares between October 1 and October 4 — about six times its bitcoin spending that week.

What was Strategy's estimated third-quarter 2026 gain on digital assets?

Strategy estimated a $20.91 billion gain on digital assets for the quarter ended September 30, 2026, with $1.88 billion in associated deferred tax expense and a digital asset carrying value of $70.82 billion. The rebound let the company reverse a $4.12 billion deferred tax asset recorded as of June 30.

Why did Peter Schiff criticize Strategy's bitcoin buying power?

Peter Schiff argued over the weekend that Strategy has lost its bitcoin-buying power because STRC no longer raises fresh money, saying the company cannot sell more Stretch preferred stock to fund purchases. Strategy maintains its cash reserve and equity programs leave it positioned to keep buying bitcoin.

When is Strategy's shareholder vote on preferred stock dividends?

Shareholders vote on October 28, 2026, on a plan to pay daily dividends across Strategy's four preferred stocks. The vote comes as more of the company's cash flows toward those preferred shares than toward new bitcoin purchases.