Strategy’s available discretionary cash has dropped sharply after the Bitcoin-focused company spent $193.1 million buying back its preferred stock last week, while its board expanded the authorization for further repurchases to $3 billion. The move comes as the company continues to support the market price of its STRC securities and faces pressure on its common shares from possible exclusion from MSCI indexes.
Cash falls as preferred-stock purchases continue
Strategy reported on Oct. 19 that its discretionary U.S. dollar cash balance stood at $447.3 million as of Oct. 18. That was down from $1.61 billion on Aug. 30, a decline of about 72%.
The latest weekly reduction was approximately $193.2 million. Almost all of that amount—$193.1 million—went toward repurchasing nearly 1.94 million shares of Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, known by its ticker STRC. The company used another $100,000 of discretionary cash for Bitcoin purchases.
STRC is a preferred security with a stated value of $100. Strategy has been buying the shares to help support their trading price near that level. The company has spent about $1.84 billion on STRC repurchases since starting the program in July.
The board has now raised the authorization for repurchases of the company’s digital credit securities by 50%, from $2 billion to $3 billion. About $1.16 billion remains available under the enlarged authorization.
The pace of buying has accelerated in recent weeks. Strategy spent about $713.5 million on STRC repurchases in the four weeks through Oct. 18, including approximately $561.8 million during the three weeks that began Sept. 28. STRC traded mostly between $99 and $100 during that period.
The purchases have become more expensive relative to the security’s stated value. Strategy’s initial repurchases averaged about $86.53 per share, representing a discount of nearly 13.5%. Its latest purchases averaged around $99.60, only about 0.4% below the $100 level.
According to CryptoSlate, market commentator Mark Harvey said Strategy had bought back roughly one-fifth of STRC’s outstanding shares without producing a sustained return to $100. The continued spending also raises a funding question: the company’s remaining $447.3 million in discretionary cash would cover approximately 2.3 weeks of repurchases at last week’s pace, assuming no additional cash became available.
Bitcoin holdings rise, but funding remains separated
Strategy also bought 22.1 million dollars’ worth of Bitcoin during the week, paying an average of $82,900 per coin. The purchases lifted the company’s holdings to 848,517 BTC, acquired for approximately $64.02 billion in total.
The Bitcoin purchases were financed mostly through the sale of Strategy common shares. The company raised about $22 million by selling 140,872 common shares and used only $100,000 of discretionary cash to complete the acquisition.
Strategy maintains a separate U.S. dollar reserve for preferred-stock dividends and interest payments on debt. That reserve stood at $4.83 billion after the company used $45.5 million to pay preferred-stock dividends. It is distinct from the discretionary cash balance and is intended primarily for those payment obligations.
The distinction matters because the lower discretionary balance limits the cash immediately available for capital-management activity, while the separate reserve is designated for dividends and debt interest rather than additional Bitcoin purchases or preferred-stock buybacks.
MSCI decision adds pressure to Strategy shares
Strategy’s latest moves follow a difficult week for its common stock. MSTR fell 11.35% over the five trading sessions ended Oct. 16, declining from $154.34 to $136.83.
The decline followed MSCI’s announcement on Oct. 15 of new rules that could make companies classified as non-operating entities ineligible for its Global Investable Market Indexes. The potential change could affect Strategy and Japan’s Metaplanet. MSCI is scheduled to publish its final list of affected companies on Nov. 11, with the new rules due to take effect after the Nov. 30 close.
A potential removal from major indexes could affect demand from passive funds. A JPMorgan estimate cited in reporting shared by Ki Young Ju put possible forced selling by passive investment funds at approximately $2.8 billion if Strategy were excluded from MSCI benchmarks.
VanEck’s Matthew Sigel said STRC briefly reached $99.90 last week before falling to $97.72 after the MSCI announcement. He also argued that preferred-stock indexes have limited MSCI-linked ownership, making STRC’s ability to return to its stated value an important test for Strategy’s plans to resume larger Bitcoin purchases through at-the-market share offerings.
Despite the uncertainty, tracked analyst forecasts remain positive. CryptoQuant CEO Ki Young Ju cited price targets of $240 from Citigroup, $175 from Barclays and $195 from B. Riley. He identified Strategy’s market-value-to-net-asset-value ratio, STRC’s distance from par and the company’s liquidity reserves as key indicators.
Strategy is scheduled to report third-quarter earnings on Oct. 29, before MSCI releases its final index-deletion list.
Current market picture
Moneyiar market data at 22:29 on Oct. 19, 2026, showed Bitcoin at $82,050.72, up 0.70% over 24 hours but down 0.54% over seven days. Compound traded at $21.642, up 2.74% in 24 hours and down 8.42% over seven days. Nexus stood at $0.0000006714, down 6.13% over 24 hours and 17.02% over seven days. Billions Network was $0.013997, down 0.59% over 24 hours and up 10.04% over seven days.
