Strategy, the company formerly known as MicroStrategy, is balancing its long-term commitment to Bitcoin with a more flexible approach to financing, dividends and share buybacks. After selling 6,948 BTC for about $432.5 million between May and August 2026, the company resumed purchases, but its recent spending has increasingly favored preferred-share repurchases over new Bitcoin acquisitions.
From software company to Bitcoin treasury
Founded in 1989 by Michael Saylor, Strategy originally built business-intelligence software and listed on Nasdaq under the ticker MSTR in 1998. Its identity changed in 2020, when it adopted Bitcoin as its primary treasury reserve asset and initially invested $250 million in the cryptocurrency.
The company said the move reflected its view that Bitcoin could serve as a store of value and offer greater long-term appreciation potential than cash. Strategy financed much of its expansion through convertible debt and preferred-stock offerings, using the proceeds to acquire more Bitcoin. That model was later copied by other public companies, including MARA, Metaplanet and Riot Platforms.
The company dropped “Micro” from its name in February 2025. Saylor, its co-founder and chair, has become one of the most prominent advocates for institutional Bitcoin ownership, while Phong Le serves as chief executive.
According to Decrypt, Strategy’s strategy changed materially in 2026. Management moved away from an absolute “never sell Bitcoin” position and adopted a goal of “never be a net seller.” In May, Le said the company could sell Bitcoin when doing so improved Bitcoin per share or helped manage debt and dividend obligations.
Strategy subsequently authorized a Bitcoin monetization program allowing sales of up to $1.25 billion to strengthen cash reserves, fund preferred dividends and repurchase securities. By mid-August, it had sold 6,948 BTC for roughly $432.5 million, or about $62,250 per coin. The company then raised money by selling MSTR shares as its stock recovered, reducing the need to sell additional Bitcoin.
Buying resumed, but buybacks remain central
Strategy restarted Bitcoin purchases in the final week of August, acquiring 4,603 BTC for $369.7 million at an average price of $80,318. The purchases were funded by MSTR stock sales. The company paused buying the following week and spent $176.3 million repurchasing its STRC preferred shares instead.
Bitcoin purchases resumed in mid-September using the company’s USD Cash account. Holdings reached a record 847,666 BTC by the end of that month. As of October 20, Strategy held 848,517 BTC acquired for a total of $64.02 billion, at an average cost of $75,446 per coin, according to its latest SEC filing.
The company’s recent capital allocation has nevertheless tilted toward STRC buybacks. Bitcoin purchases slowed to between $20 million and $30 million a week, while STRC repurchases approached $200 million weekly. On October 19, Strategy’s board increased the authorization for the repurchase program to $3 billion. STRC traded at $99.05 on October 20, slightly below its $100 par value.
Strategy has also proposed changing how dividends on STRF, STRC, STRK and STRD accrue. Under the proposal, dividends would accrue every calendar day, including weekends and holidays. The company says the change could reduce volatility in its preferred shares. Shareholders can vote on the proposal through October 28.
Reserves, valuation and market pressure
Strategy created a USD Reserve in December 2025, initially funded with $1.44 billion, to cover preferred dividends and debt interest. In August 2026, it added a separate USD Cash account for broader treasury needs, including Bitcoin purchases, dividends, stock repurchases and debt repayment. On October 18, the USD Reserve held $4.83 billion, while USD Cash held $447.3 million.
Investors commonly assess Strategy through mNAV, or market value relative to net asset value. The company changed the metric in July 2026 as preferred equity became more important. Its revised “net Bitcoin per share” measure subtracts preferred obligations and out-of-the-money convertible debt before calculating what remains for common shareholders.
On the older measure, Strategy’s basic mNAV fell to 0.58 on June 26 and recovered to about 0.97 on September 21. It stood at 0.87 in October, or 0.93 on a diluted basis. Strategy’s own revised measure placed mNAV at 1.12 times on the same day.
Bitcoin’s price movements have had a major effect on the company’s position. Decrypt reported that Strategy was about $13 billion below its acquisition cost when Bitcoin traded near $58,000 in July. By October 20, Bitcoin was around $82,500 in Decrypt’s data, putting the holdings at approximately $70.3 billion, or about $6.3 billion above cost. MSTR traded at $144.65 that day, compared with $91.67 on July 24 and $168.50 on September 21.
Strategy also faces a potential index-related challenge. MSCI decided that “non-operating companies” dominated by a single asset would be excluded from its Global Investable Market Indexes from the close of November 30, 2026. MSCI will publish affected companies on November 11. Funds tracking its indexes held 3.1% of Strategy’s basic shares in early September, according to the source material.
Moneyiar market picture
Moneyiar data recorded Bitcoin at $83,379.31 at 11:09 a.m. on October 21, 2026, up 2.33% over 24 hours and 0.08% over seven days. Compound was $25.6563, up 9.82% in 24 hours and 12.6% over seven days. ONEchain stood at $0.102075, up 0.26% daily but down 11.76% weekly, while RedStone was $0.145424, up 7.05% daily and down 5.78% over seven days.
