Strategy Inc. has reversed course on capital allocation, selling Bitcoin and common stock to build cash reserves and repurchase preferred shares — a departure from the continuous accumulation model the company ran for years.
The company sold $105 million in Bitcoin last week and offloaded 3 million common shares for $291 million. Proceeds pushed its dollar-based reserve to $4.65 billion.
Strategy also repurchased 912,143 of its STRC preferred shares for $81.2 million, according to an SEC filing. The shares were originally designed to trade near par value but had been trading at a discount. The buyback is the first of its kind since the company overhauled its financing model in June.
That overhaul shifted the company's stated priorities from Bitcoin acquisition toward liquidity preservation and securities repurchases.
The Bitcoin sales are not isolated. Strategy has sold a total of 6,948 BTC this year, reducing its overall holdings by approximately 0.8 percent. The firm still holds 842,138 BTC, acquired at an average cost of $63.51 billion, and remains the largest corporate holder of Bitcoin by a wide margin. Its Bitcoin position was valued at approximately $56 billion as of the most recent disclosure.
The company's common stock, traded as MSTR, was down more than 1 percent ahead of Monday's open. As of Friday, shares were priced around $93 — a 75 percent decline over the past year.
The stated purpose of the transactions is to give management broader flexibility to sell Bitcoin, repurchase securities and preserve liquidity.
