Sam Daodu
6 min read
Quick Read
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Strategy spent 3x more cash on preferred stock buybacks than Bitcoin, draining reserves from $1.3B to $447M in just 5 weeks.
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Whale wallets holding between 10 and 10,000 BTC accumulated 89,000 BTC in the same period, which was 35x more than Strategy’s 2,516 BTC purchase.
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Strategy authorized up to $1.25B in Bitcoin sales to fund its dividend reserve, already offloading $218M in BTC during 2026.
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Strategy Inc. (NASDAQ: MSTR) made headlines recently for spending an impressive $890 million on stock buybacks, repurchasing its preferred stock between September 14 and October 18, 2026. According to Santiment data, this amount is three times the company’s Bitcoin purchases during the same period, which totaled 3,466 Bitcoin (CRYPTO: BTC) at a cost of $290 million.
A preferred stock buyback occurs when a company uses cash to buy back shares it previously issued. This practice reduces the shareholder base and lowers the dividends the company must pay.
On October 19, Strategy’s board of directors raised the buyback cap to $3 billion. Most of the $890 million came from a significant reduction in the company’s dollar cash, which fell from $1.3 billion on September 13 to $447 million by October 18.
As of October 20, Bitcoin was trading at about $81,511, down 0.7% in the previous 24 hours. Meanwhile, Strategy shares were trading around $134 in premarket activity, down 1.5% from the October 19 close of $136.
Although Strategy continues to buy Bitcoin, it is now allocating more of its cash reserves to support its stock buyback initiatives. With the largest corporate holder of Bitcoin shifting its resources, the question arises: Who is buying BTC now?
Strategy Inc.’s Expanded Buyback Program Protects Its Preferred Stock
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Strategy markets itself as the world’s first and largest Bitcoin Treasury Company, but it also develops enterprise analytics software, which generated $122.4 million in revenue in Q2 FY2026. Despite this income, the company’s Bitcoin holdings primarily drive its financial performance. It reported a staggering $8.22 billion net loss in Q2 FY2026 due to the fair-value accounting of its digital assets.
