Key Takeaways
- • Strategy (MSTR) fell about 2% after disclosing in an 8-K filed before the open that it bought no bitcoin in the week of Oct. 19 to 25, ending a run of weekly purchases that began in mid-September, as bitcoin slipped below $80,000.
- • Strategy spent $204.9 million buying back its STRC preferred stock last week, up from $193.1 million the prior week, and USD Cash fell to $242.4 million from $447.3 million, all paid from the bitcoin-buying cash pool.
- • Strategy sold no shares through its at-the-market program last week; STRC, which fell below its $100 stated amount in late May, has not been sold since, leaving its funding engine running in reverse.
- • Third-quarter results are due after the close on Oct. 29, but the bigger near-term catalyst is MSCI's Nov. 11 announcement of companies its new rule removes from indexes after the Nov. 30 close.
Summary
Strategy shares slipped about 2% on the day after the company said it bought no bitcoin last week, while bitcoin fell back below $80,000 over the weekend. Coinbase Global (COIN) was down 2%, while Riot Platforms (RIOT), MARA Holdings (MARA) and CleanSpark (CLSK) were modestly higher. Thomas "Tom" Lee, chairman of Bitmine Immersion Technologies, the No. 2 crypto treasury company after Strategy, attributed the broader crypto decline to the same "risk off" forces behind an AI-related sell-off.
According to Strategy's 8-K, the company made no bitcoin purchases and sold no shares through its at-the-market program in the week covering Oct. 19 to 25. It spent $204.9 million repurchasing its STRC preferred stock, up from $193.1 million the week before, funded entirely from USD Cash. That balance fell to $242.4 million from $447.3 million. The separate $4.83 billion USD Reserve, which covers preferred dividends and interest, was unchanged.
Strategy has historically funded bitcoin purchases by issuing new stock, and its diluted share count nearly tripled from fiscal 2021 to fiscal 2025. STRC was meant to assume that role, but it has traded below its $100 stated amount since late May, and the company has not sold any since. Strategy has instead raised its STRC buyback program to $3 billion, with $956.8 million remaining, drawing on a cash position it built in fiscal 2025 when it reached $2.3 billion. The analysis argues that bitcoin purchases are unlikely to resume until STRC trades back near $100, though a single STRC sale at par would restart the funding cycle.
Strategy's third-quarter results are scheduled after the close on Oct. 29, the same evening as Coinbase's. The company has already said it expects a $20.91 billion gain on its bitcoin holdings. The more significant date is Nov. 11, when MSCI will name the companies its new rule removes from its indexes after the Nov. 30 close. Index removal would force passive funds to sell, and Strategy's stock fell nearly 10% in a single day on MSCI's earlier decision.
According to Strategy's 8-K, the company made no bitcoin purchases and sold no shares through its at-the-market program in the week covering Oct. 19 to 25. It spent $204.9 million repurchasing its STRC preferred stock, up from $193.1 million the week before, funded entirely from USD Cash. That balance fell to $242.4 million from $447.3 million. The separate $4.83 billion USD Reserve, which covers preferred dividends and interest, was unchanged.
Strategy has historically funded bitcoin purchases by issuing new stock, and its diluted share count nearly tripled from fiscal 2021 to fiscal 2025. STRC was meant to assume that role, but it has traded below its $100 stated amount since late May, and the company has not sold any since. Strategy has instead raised its STRC buyback program to $3 billion, with $956.8 million remaining, drawing on a cash position it built in fiscal 2025 when it reached $2.3 billion. The analysis argues that bitcoin purchases are unlikely to resume until STRC trades back near $100, though a single STRC sale at par would restart the funding cycle.
Strategy's third-quarter results are scheduled after the close on Oct. 29, the same evening as Coinbase's. The company has already said it expects a $20.91 billion gain on its bitcoin holdings. The more significant date is Nov. 11, when MSCI will name the companies its new rule removes from its indexes after the Nov. 30 close. Index removal would force passive funds to sell, and Strategy's stock fell nearly 10% in a single day on MSCI's earlier decision.
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