Key facts
- Strategy spent $176.3 million repurchasing its preferred stock and $28.7 million on Bitcoin purchases in the first week of October.
- The company reported an estimated $20.91 billion gain on digital assets for the third quarter.
- Strategy's Bitcoin holdings increased to 848,000 BTC after purchasing 334 coins for $28.7 million.
- The company is seeking shareholder approval to shift preferred stock dividend payments to a daily basis.
- Shareholders will vote on the dividend proposal on October 28.
Strategy allocated significantly more capital to repurchasing its STRC preferred stock than to acquiring Bitcoin in the first week of October. The firm spent $176.3 million on buying back shares, while its Bitcoin purchases for the same period amounted to $28.7 million for 334 BTC.
This capital allocation strategy comes as Strategy is seeking shareholder approval to overhaul its dividend payment structure for its preferred stock lineup. The company filed a proxy requesting the ability to pay regular dividends on STRC, STRF, STRK, and STRD preferred stocks on a daily basis, a shift from STRC's current twice-monthly schedule and the other three's quarterly payments. Strategy stated that this change would not alter dividend rates or total payment obligations but aims to shorten reinvestment delays and enhance liquidity and price stability.
Shareholders are scheduled to vote on this proposal at a special meeting on October 28. If the proposal passes, the daily dividend schedule for STRC is expected to commence in November, with STRF, STRK, and STRD to follow in January.
Strategy also reported an estimated $20.91 billion gain on digital assets for the third quarter, against $1.88 billion of deferred tax expense. The company marks Bitcoin at fair value, reflecting price appreciation across the quarter. Strategy's average cost across its entire Bitcoin position is $75,440.70, with the coins purchased last week costing nearly 14% more than that average.