Strategy raised $5.4 billion in stock sales in Q3 but bought only $588 million of bitcoin, with most proceeds used for STRC buybacks and preferred dividends.
Between July and September, Strategy issued $5.4 billion in stock that diluted common shareholders, yet the company only acquired $588 million of bitcoin. Consequently, less than 11 cents of each dollar raised in the third quarter paid for BTC.
Strategy uses what it calls the "ATM" — at-the-market equity sales that dilute holders — when purchasing bitcoin. With little operational cash flow, the firm almost always sells shares to finance acquisitions.
Over the last five years, the firm built its BTC holdings using borrowed money, but ended that streak in the third quarter. It sold 5,552 BTC for $348.6 million, partly to support dividend payments and partly to repurchase its STRC shares.
The STRC buybacks proved costly for MSTR common shareholders, who overwhelmingly bore the financing cost.
STRC shares were promoted by management at a stable $100 per share, but their price fell to the $70s and $80s for extended periods.
In the third quarter, Strategy used most of its raised funds on STRC buybacks and preferred dividends — including accumulating cash for those purposes — rather than on bitcoin.
The fundraises encompass all share classes the company offers: MSTR common stock and the preferred issues STRC, STRK, STRF, STRD, and STRE.
For most of the five-year period, nearly all funds went to bitcoin. Starting in 2026, however, STRC buybacks and preferred dividends sharply reduced the proportion allocated to BTC.
Strategy, the self-labeled bitcoin treasury firm, purchased 7,218 BTC during the quarter. After deducting sales, it ended the period with a net addition of only 1,666 coins.
The allocation of fundraised cash to bitcoin is tailing off. In 2024, almost every dollar raised through the ATM went to BTC.
Even a temporary dip in Q3 2025 — which broke the near-perfect record — still saw over 94 cents of each ATM dollar used for bitcoin.
The decline then set in decisively. In Q4 2025, less than 78% went to BTC; Q1 2026 rebounded to 98%; Q2 2026 dropped under 77%; and the most recent quarter was below 11%.
Over the first three quarters of 2026, a diminishing portion of the company's equity raises financed bitcoin purchases.
The week ending October 26 provided further evidence of the pattern: $164 million of new MSTR dilution, with just 40 cents of each dollar spent on BTC.
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Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
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