Strategy repurchases 1.43M shares for $136M, boosts USD reserves to $5B

Strategy, the company formerly known as MicroStrategy, just spent $136.4 million buying back 1,431,212 shares of its own preferred stock during the week ending August 23. At the same time, the firm’s USD reserves climbed to $5.1 billion, up from $4.8 billion just a week earlier.

Inside the buyback mechanics

The shares repurchased were Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, trading under the ticker STRC. These preferred shares carry a 12% annual dividend rate.

The buyback falls under Strategy’s $1 billion Digital Credit Securities Repurchase Program. After this latest round of purchases, the company still has $516.6 million of capacity remaining under that preferred stock program, plus a separate $1 billion authorization for common stock repurchases.

Funding for the buyback came primarily from sales of Class A common stock (MSTR) through at-the-market offerings. The $300 million increase in USD reserves, from $4.8 billion to $5.1 billion in a single week, was also fueled by these ATM equity sales. Weekly SEC filings have documented a consistent pattern of these offerings supporting dividends, buybacks, and reserve growth.

The Bitcoin stays put

Strategy’s Bitcoin holdings remained completely unchanged at approximately 840,447 BTC, with a cost basis of around $75,385 per coin.

Strategy announced this shift in approach on June 29, 2026, when it unveiled what it calls the Digital Credit Capital Framework. The framework marked a pivot from pure net issuance (selling stock to buy Bitcoin) to active balance-sheet management (selling stock to buy back other stock and build reserves).

The BTC Monetization Program authorizes potential Bitcoin sales of up to $1.25 billion to replenish USD reserves or fund buybacks if equity markets become less cooperative. So far, that option remains unused.

Why the $5.1B cash cushion matters

With $5.1 billion in USD reserves, Strategy can cover its preferred dividend obligations at a 12% rate across its outstanding STRC shares without being forced to sell Bitcoin during a downturn. The reserve also positions the company to continue buying back STRC shares at prices it considers accretive if they trade at a discount.

With $516.6 million still available under the preferred buyback program and a billion-dollar common stock repurchase authorization sitting largely untapped, Strategy has considerable room to continue these operations. The question going forward is whether equity markets will remain receptive enough to keep the ATM machine running, or whether the company will eventually need to utilize the $1.25 billion Bitcoin monetization option.

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