Strategy Buys 267 BTC for $22 Million, October Total Hits $73 Million

Strategy, the largest corporate holder of bitcoin, bought 267 BTC for just over $22 million last week, lifting its treasury to 848,517 coins worth roughly $69.5 billion at current prices, according to a Form 8-K filed Monday with the U.S. Securities and Exchange Commission.

The purchase is the company's third acquisition in October and brings its monthly bitcoin spend to $73 million. The prior week, Strategy paid $22 million for 250 BTC — slightly fewer coins for the same outlay, implying a marginally higher average entry price on the latest tranche.

The same filing discloses a second capital move: Strategy repurchased $193.1 million of its STRC preferred stock. The company has been buying back the shares this year as they traded below their $100 face value amid market volatility and index-related changes. The buyback matters for the preferred structure, which now spans four instruments — STRF, STRC, STRK and STRD — that pay investors yield and have become a core part of Strategy's capital engine alongside its equity issuance.

What does the filing change?

Operationally, not much: Strategy is doing what it has done since August 2020, when the company — then MicroStrategy — began converting its balance sheet into bitcoin to pursue better returns for shareholders. It has since deployed approximately $64 billion into BTC. Investors who want indirect exposure to bitcoin can buy the shares instead of holding the asset directly, and that remittance function is now layered with yield-bearing preferreds that fund further purchases.

The equity market's verdict on Monday was mildly positive: MSTR traded nearly 2% higher at around $139 per share in New York morning dealing. The longer tape is harsher — the stock is down 17% over the past month and 11% year-to-date, a discount that compounds the case for buying back paper below face value.

Why is the MSCI decision the real story?

The bigger risk sits outside the company's control. Morgan Stanley Capital International said last week it is moving ahead with a proposal "to define and classify non-operating companies as ineligible for inclusion in the MSCI Global Investable Market Indexes."

That language points directly at Strategy, whose software business is now a fraction of a balance sheet dominated by 848,517 BTC. If MSCI adopts the rule, the company could be removed from the indexes, and passive funds that track them would have to unwind positions — cutting the pool of institutional holders that has anchored demand for the stock and, by extension, a funding channel for continued bitcoin purchases.

The interaction between the index process and the preferred buybacks is worth watching. A smaller indexed shareholder base raises the cost and difficulty of issuing new equity or preferred paper at acceptable yields, which is how Strategy has financed its $64 billion accumulation to date.

MSCI has not set a final decision date in the material released so far, but the classification proposal is now formally in motion, and the next index-review cycle will determine whether the largest corporate bitcoin holder keeps its place in the funds that own it.