Strategy bought 334 bitcoins last week for $28.7 million, but spent $176.3 million over the same period on buybacks of STRC preferred shares.

On Oct. 5, Cointelegraph reported that the company allocated more than six times as much funding to STRC buybacks as it did to bitcoin purchases.

An 8-K filing submitted to the U.S. Securities and Exchange Commission showed the company increased its bitcoin holdings to 848,000 last week. But given it bought about 1.77 million STRC shares over the same period, its recent capital allocation appears to be weighted toward managing preferred shares rather than adding bitcoin holdings.

This pattern also appeared in overall third-quarter allocations. Strategy bought 7,218 bitcoins in the third quarter but sold 5,553, bringing holdings to 847,666 as of the end of September. That was only a 0.2 percent increase from 846,000 at the end of June.

That contrasts with the second quarter, when bitcoin holdings rose about 11 percent to 846,000 from 762,099. Net additions in the third quarter were 1,666 bitcoins, with a current value of about $143.0 million. About $1.38 billion was spent on STRC buybacks in the same quarter.

Bitcoin holding growth slowed, but digital asset valuation gains increased. Strategy said preliminary gains related to digital assets in the third quarter were $20.91 billion. Most of that came from a rise in the fair value of its existing bitcoin holdings.

Strategy, which has focused funding on preferred share buybacks, is also pushing ahead with a dividend system overhaul. In a separate proxy filing, the company plans to put to a shareholder meeting a proposal to pay regular dividends for STRC, STRF, STRK and STRD every business day. STRC currently pays twice a month, while the other three pay quarterly.

Strategy said the proposal would not change dividend rates or total payment obligations. It said it expects the change to reduce reinvestment delays and improve liquidity and price stability. A shareholder vote will be held at a special meeting on Oct. 28, and if approved a new schedule will apply to STRC from November and to STRF, STRK and STRD from January.

This capital allocation shows that preferred shares are playing a larger role in Strategy's bitcoin treasury strategy. The company is adjusting its fundraising and liquidity management approach while revising preferred dividend structures, and the shareholder vote result at the end of October is expected to be a turning point for future operations.