TLDRStrategy spent $635.2 million buying back STRC preferred shares as MSTR stock faced pre-market pressure.STRC trades near $97.34, still below its $100 target despite Strategy’s $1 billion support fund.Strategy recently used $151.8 million to repurchase STRC at an average price of $97.48.Strive’s SATA offers a 13% annual dividend, compared with STRC’s 12%, increasing competition for preferred-share investors.Strategy resumed Bitcoin purchases with 4,603 BTC bought for $369.7 million after a two-month pause.Strategy’s (MSTR) stock proposal has drawn fresh attention after the company spent $635.2 million buying back its STRC preferred shares. MSTR stock fell about 3% in pre-market trading as investors weighed the use of cash for preferred stock support instead of larger Bitcoin purchases. Strategy created a $1 billion fund to support STRC, which carries a target value of $100. The preferred stock recently traded near $97.34 after recovering from a low of $71.Strategy Inc, MSTRMSTR Stock Proposal Puts STRC in FocusStrategy recently spent $151.8 million to repurchase STRC shares at an average price of $97.48. The company uses buybacks to reduce available supply and support the preferred stock price. However, STRC has remained below its $100 target. That level matters because Strategy relies on preferred stock sales as one source of capital for Bitcoin purchases and other corporate needs.Strive’s SATA preferred stock has added competition in the market. SATA offers a 13% annual dividend and pays cash distributions daily, while STRC offers a 12% annual dividend with payments twice each month. SATA has traded near its $100 target, giving Strive more room to issue shares and raise cash. Strive can then direct those funds toward Bitcoin purchases under its treasury strategy.Strategy also returned to the Bitcoin market after a two-month pause. The company purchased 4,603 Bitcoin for $369.7 million at an average price of roughly $80,000 per coin. The latest purchase increased Strategy’s Bitcoin holdings to 845,050 BTC. At the stated market value, the position was worth about $65.9 billion.Preferred Stock Pricing Affects FundingStrategy’s capital model connects MSTR stock, STRC pricing, and Bitcoin purchases. When STRC trades close to $100, the company can raise funds on more favorable terms through preferred share sales.A weaker STRC price makes future fundraising more expensive and can reduce the amount of capital available for Bitcoin purchases. Strategy must therefore balance support for preferred shares with its wider Bitcoin accumulation plan.MSTR stock remains closely tied to Bitcoin because investors often use the shares as indirect exposure to the cryptocurrency. Strategy’s future financing choices will continue to shape how much capital it can direct toward new Bitcoin purchases while maintaining demand for STRC. The balance between both uses of cash remains central to its strategy.The post Strategy Spends $635M on STRC—Why Is MSTR Stock Falling? appeared first on Blockonomi.