Strategy spends $176.3M on STRC buybacks, outpacing its $28.7M Bitcoin buy
In brief
- Strategy bought 334 BTC for $28.7 million, bringing its holdings to exactly 848,000 BTC.
- STRC buybacks totaled $176.3 million in the same week, covering about 1.77 million preferred shares.
- A separate proxy filing asks shareholders to approve paying preferred dividends every business day.
- Shareholders are scheduled to vote on the daily-dividend proposal at an Oct. 28 special meeting.
Buybacks outpace the Bitcoin buy
The figures come from Strategy's Monday 8-K filing with the SEC, which covers activity from Monday through Sunday of the prior week. In that window the company bought 334 BTC for $28.7 million, which took its holdings to exactly 848,000 BTC.
Most of the week's spending went to the preferred stock. Strategy bought back about 1.77 million shares of STRC for $176.3 million, according to Cointelegraph. The outlet said the company spent more than six times its weekly Bitcoin buying budget on buybacks of that one preferred stock.
So the week came to $176.3 million on STRC and $28.7 million on BTC.
Daily dividends proposed
Strategy also filed a separate proxy on Monday asking shareholders to approve regular dividend payments every business day on four preferred stocks (STRC, STRF, STRK and STRD). The change would replace STRC's twice-monthly schedule and the quarterly payments on the other three.
Why pay daily? Strategy says the change is about payment timing, not the size of the payouts. According to the company, the proposal wouldn't change dividend rates or its overall payment obligations. Strategy also said daily payments could shorten reinvestment delays and improve liquidity and price stability. Those are the company's expected benefits, and the filing doesn't show they'll happen.
What happens next
Nothing has been approved yet. Shareholders are scheduled to vote on the proposal at a special meeting on Oct. 28. If it passes, STRC would move to daily payments starting in November, and STRF, STRK and STRD would follow in January.
Until that vote, the filings give two numbers worth watching: 848,000 BTC in Strategy's holdings, and a buyback bill that was more than six times the size of last week's Bitcoin purchase.
Frequently asked questions
What is Strategy's proposed daily dividend schedule?
Strategy filed a proxy asking shareholders to approve regular dividend payments every business day on STRC, STRF, STRK and STRD. The change would replace STRC's twice-monthly schedule and the quarterly payments on the other three preferred stocks.
Would daily dividends change how much Strategy's preferred stocks pay?
Strategy said the proposal would not change dividend rates or its overall payment obligations. The company said daily payments could shorten reinvestment delays and improve liquidity and price stability.
When would Strategy's daily dividends start if approved?
Shareholders are scheduled to vote on the proposal at a special meeting on Oct. 28. If it's approved, STRC's daily schedule would start in November, and STRF, STRK and STRD would follow in January.
