# Strategy skips Bitcoin buy, spends $25 M on preferred stock buyback

**Published:** 2026-07-30T08:13:50.594Z  
**Topic:** Microstrategy Bitcoin  
**Sentiment:** neutral  
**Publisher:** TrendWatcher — https://www.trendwatcher.in/article/7d0a602a-216d-4d62-81d2-5a2ea533b620

Strategy (MSTR) halted Bitcoin purchases for a fifth week, repurchased $25 M of STRC preferred shares and added $525 M to its cash reserve, signaling a shift

Strategy bought back 288,930 STRC preferred shares for $25 million between July 20‑26, while its Bitcoin holdings stayed unchanged at 843,775 BTC – its longest five‑week pause in buying the cryptocurrency in nearly two years [1].  

| At a glance | |
|---|---|
| Bitcoin purchase pause | 5 weeks (longest in ~2 years) |
| Preferred stock buyback | $25 million (288,930 shares) |
| Cash reserve increase | $525 million to $3.75 billion |
| BTC holdings value | ≈ $53.9 billion at $63,900/BTC |

## Capital allocation shift  
Strategy’s first use of its $1 billion preferred‑stock repurchase programme came after STRC traded below its $100 par value, reaching roughly $88 in pre‑market trading [3]. The company said the buyback “cuts the future dividends the company would owe” by retiring a $100 obligation for $86.52 per share, effectively reducing the cost of its 12 % annual dividend on the $10 billion of STRC outstanding [1].  

The $525 million cash infusion came from selling 5,429,160 MSTR common shares through its at‑the‑market program, generating $544.5 million in net proceeds [2][3]. Strategy explicitly stated that the reserve, now $3.75 billion, will fund preferred‑dividend payments and debt interest for about 2.1 years, and that future buybacks may be financed by additional common‑stock sales or, “depending on market conditions,” Bitcoin sales [1][3].  

## Bitcoin holdings and market context  
Strategy still holds 843,775 BTC, valued at roughly $53.9 billion at the current $63,900 price, down from the $63.68 billion cost basis (average $75,476 per coin) – a $9.8 billion paper loss that would require an 18 % price rise to break even [1]. The firm’s mNAV (market‑adjusted net asset value) fell to about 1.0 in a Standard Chartered note, meaning a dollar of new stock now buys exactly a dollar of Bitcoin, eliminating the premium that once drove the “stock‑Bitcoin loop” [1].  

The pause aligns with broader corporate treasury trends: Glassnode reported that treasury‑type firms’ Bitcoin buying fell from over $500 million on multiple days in April‑May to near zero since early June [1]. Yet Strategy’s CEO Phong Le reiterated a long‑term Bitcoin buying intent, even as the firm prioritizes strengthening its balance sheet and retiring expensive preferred obligations [2].  

## What to watch  
- Bitcoin price at $70,000: a level that could revive the premium needed for the stock‑Bitcoin loop.  
- Any announcement of Bitcoin sales to fund future buybacks, as hinted in the July 27 filing.  
- STRC price movement around its $100 par value, which determines the cost efficiency of further preferred‑stock repurchases.  

Strategy’s five‑week Bitcoin buying hiatus removes the market’s largest corporate buyer from the demand side, leaving the cryptocurrency to rely on broader institutional flows. Whether the firm resumes purchases will hinge on Bitcoin’s price trajectory and the board’s willingness to tap its sizable cash reserve or sell preferred shares.

## Sources
1. 24/7 Wall St. — [Strategy Hasn’t Bought Bitcoin in Five Weeks. Is Bitcoin Losing Its Biggest Corporate Buyer?](https://247wallst.com/investing/cryptocurrency/2026/07/29/strategy-hasnt-bought-bitcoin-in-five-weeks-is-bitcoin-losing-its-biggest-corporate-buyer/)
2. Bitcoin Magazine — [Strategy Skips Bitcoin Again, Buys Back $25M of STRC Stock](https://bitcoinmagazine.com/news/strategy-skips-bitcoin-buy-again)
3. Decrypt — [Strategy Adds $525M to Cash Reserve, Skips Bitcoin Buy for Fifth Week](https://decrypt.co/374369/strategy-adds-525m-to-cash-reserve-skips-bitcoin-buy-for-fifth-week)

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Cite as: TrendWatcher, "Strategy skips Bitcoin buy, spends $25 M on preferred stock buyback", https://www.trendwatcher.in/article/7d0a602a-216d-4d62-81d2-5a2ea533b620