Strategy has stepped up its repurchases of STRC preferred shares as the security trades below its $100 stated value, using corporate capital to support the market price of a key financing instrument.
The company began the program in July with a roughly $25 million purchase of STRC at an average price of $86.52 per share. Strategy later increased its purchases as the preferred stock recovered from its selloff.
STRC Buyback Campaign Accelerates
Strategy most recently repurchased about $176.3 million of STRC between Aug. 31 and Sept. 7. The company bought 1.81 million shares at an average price of about $97.36.
The latest purchase followed several increasingly larger buybacks. Strategy has now committed roughly $811 million to the program since launching the effort.
The company also doubled its authorized Digital Credit Securities Repurchase Program from $1 billion to $2 billion. That leaves about $1.19 billion available for additional repurchases.
Strategy has said it wants STRC to trade near $99 to $100 with strong liquidity and lower volatility. The company currently avoids issuing new STRC below $100.
Why the $100 Level Matters
STRC carries a $100 stated amount and currently has a 12% annualized dividend rate. Buying shares below that level allows Strategy to retire preferred capital at a discount.
For example, purchasing STRC at $97.36 removes $100 of stated preferred value for each share while costing roughly $97.36. The strategy also reduces future dividend obligations on the retired shares.
However, the aggressive repurchases have affected Strategy’s recent capital allocation. The company did not purchase additional Bitcoin during the latest reporting period, after buying 4,603 BTC for approximately $369.7 million during the previous week.
Strategy’s actions highlight the growing importance of its preferred-stock market. Supporting STRC near its stated value could help preserve the security’s role as a financing tool, while reducing outstanding preferred obligations through discounted purchases.
