Strategy (MSTR) is the largest institutional holder of Bitcoin (BTCUSD). Over the last six years, it has purchased more than 800,000 BTC, currently worth more than $50 billion. Strategy has raised equity and debt capital several times to purchase the digital asset. However, it recently spent money on preferred stock, which caught investors' attention.
For long-time watchers of Michael Saylor's Bitcoin treasury company, this is a notable change in behavior. Here's what happened — and what it could mean for investors holding MSTR stock.
Strategy Skips Bitcoin Buying for Third-Straight Week
Strategy reportedly did not buy or sell any Bitcoin between July 20 and July 26, marking the third consecutive week without a purchase. The company's total holdings remain unchanged at 843,775 BTC, bought over time for a combined $63.69 billion, or about $75,476 per coin on average. Bitcoin has significantly underperformed the broader markets in the last 12 months and now trades roughly 50% below all-time highs. Instead of adding to its BTC pile, Strategy used its capital differently. The company sold 5.42 million shares of its Class A common stock and raised $544.5 million in net proceeds. That cash helped push the company's USD reserve up to $3.75 billion.
To some analysts, the pause in Bitcoin buying, paired with a pivot toward share sales and preferred stock repurchases, reads as confirmation that the recent crypto downturn is weighing heavily on Strategy’s usual playbook.
This month, Strategy repurchased 288,930 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock, known as STRC, for roughly $25 million at an average price near $86.52 per share. That leaves about $975 million still available under the company's $1 billion Digital Credit Securities Repurchase Program, which launched in June.
STRC has been trading below its $100 stated value, and the company said it plans to keep buying it back at a disciplined pace, more aggressively when the discount is steep and less so as the price climbs back toward par.
CEO Phong Le explained the thinking behind the move. "At prices below $100 per share, STRC repurchases represent an attractive allocation of capital because they can reduce future preferred dividend requirements at a discount," Le said in a statement.
Importantly, the money for these buybacks isn't coming from the company's USD reserve, which is reserved for paying dividends and interest. Instead, Strategy is funding STRC repurchases through stock sales and, potentially down the road, Bitcoin sales. The board also plans to keep STRC's dividend rate steady at 12.00% until the stock trades consistently near its $100 target.
Why the Shift Matters for MSTR Stock Investors
Strategy has spent years building its identity around one simple idea: buy Bitcoin, hold it forever, and grow Bitcoin per share over time. Pausing purchases for three weeks in a row is a break from that pattern, even if the company insists that it's just good capital management.
Back in May, Executive Chairman Michael Saylor hinted this kind of flexibility was coming. During a shareholder call, he said the company runs multiple financial models weekly, sometimes daily, weighing whether to fund obligations with cash, equity, credit, or BTC sales.
"It's not unlikely that we'll sell some Bitcoin between now and the end of the year," Saylor said.
Strategy has also been busy refining how it measures its own performance. In a July 2026 investor presentation, Strategy introduced updated metrics like Net Reserve and Net BTC Per Share, designed to show investors a clearer picture of the company's BTC holdings after accounting for debt and preferred stock obligations. The ongoing retooling suggests management is preparing investors for a more complex capital structure going forward — one where credit management plays as big a role as Bitcoin accumulation.
For now, the market seems to be reading the pause as a sign of discipline rather than distress, given that MSTR shares rose on the news. But if Bitcoin buying stays frozen much longer, investors may start asking harder questions about whether Strategy's core strategy is shifting for good or just taking a temporary detour while it shores up its preferred stock lineup.
Out of the 19 analysts covering MSTR stock, 16 recommend a “Strong Buy,” one recommends a “Moderate Buy” rating, and two recommend a “Hold.” The average price target of $295.38 implies potential upside of 217% from current levels.
