MicroStrategy halts Bitcoin buying, deploys $176M to stock buybacks

Buyback Surge Over Bitcoin Accumulation

Strategy bought no Bitcoin in the week to September 7, despite ending a two-month purchasing pause just seven days earlier. The firm's board chose instead to accelerate its own stock repurchase program, committing $176.3 million to acquiring STRC preferred shares.

The shift signals a tactical pivot toward shareholder returns. The board doubled the authorization of the Digital Credit Securities Repurchase Program from $1 billion to $2 billion, leaving $1.19 billion available for future buybacks as of September 7.

Holdings Remain Substantial Despite Pause

Strategy's Bitcoin position stands at 845,050 BTC, valued at roughly $65.7 billion against the $63.7 billion paid at an average cost of $75,412 per coin including fees. The unrealized gain represents about 3% appreciation from the firm's cost basis.

The August purchase of $370 million in Bitcoin had marked the company's first acquisition since June, breaking a prolonged accumulation freeze. That buying window lasted just one week before the firm pivoted to preferred stock repurchases.

Index Removal Pressure Mounts

Strategy's leadership is pushing back against MSCI's proposed index rules. Chair Michael Saylor and CEO Phong Le asked MSCI to withdraw a rule that would remove Strategy from its global benchmarks. Funds tracking MSCI indexes currently hold 3.1% of Strategy's basic shares, making the index status material for capital access.

MSCI's consultation closes at the end of September, with a decision due October 16. The outcome could reshape Strategy's cost of capital and shareholder composition.

Balance Sheet Snapshot

The firm's dollar reserves total $5.10 billion in the USD Reserve and $1.44 billion in USD Cash, providing substantial liquidity for both preferred dividend coverage and future acquisitions. Strategy raised $2 billion selling MSTR stock in August, fueling both the Bitcoin purchase and ongoing buyback capacity.