Strategy Inc. Executive Chairman Michael Saylor announced on July 27 that future repurchases of the company's Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) may be funded through either bitcoin sales or MSTR stock sales, depending on market conditions. The financing choice responds to STRC trading below its $100 stated amount, allowing the company to retire preferred shares at a discount. Under Strategy's digital credit capital framework, the company does not intend to issue additional STRC below $100, and aims to maintain STRC trading near $100 with high liquidity, low volatility, and sustainable independent demand.
Strategy Repurchases 288,930 STRC Shares During Week Ending July 26
During the week ending July 26, Strategy repurchased 288,930 STRC shares for approximately $25 million at an average price of $86.52 per share, the company announced on July 27. Another $975 million remains available under the company's preferred securities repurchase authorization. At the latest average purchase price, the company acquired each STRC share for $13.48 below its stated amount before accounting for future dividend savings. STRC carries a $100 stated amount and a dividend rate that management evaluates monthly, currently set at a 12% annualized rate.
Company Scales Repurchases According to Price and Liquidity
Saylor presented Strategy as a regular and disciplined buyer below $100, with repurchases increasing at deeper discounts and tapering as STRC approaches its stated amount. Strategy President and CEO Phong Le stated, "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 added, "We intend to scale our purchases according to both price and liquidity—more at deeper discounts and less as the STRC trading price approaches $100 per share—while allowing independent market demand to establish a healthy and sustainable market."
USD Reserve Remains Dedicated to Dividends and Debt Obligations
Separately, Strategy increased its USD Reserve by $525 million through MSTR common-stock sales, raising the balance to a record $3.75 billion. The reserve covers approximately 25 months of expected preferred dividend payments and remains dedicated to preferred dividends and debt obligations under Strategy's board-approved policy. That restriction leaves future STRC repurchases to be financed through other sources, including MSTR stock sales and bitcoin sales when market conditions justify them, without drawing from the USD Reserve.
FAQ
What did Strategy announce on July 27 regarding STRC repurchases?
Strategy announced that future STRC repurchases may be funded through either bitcoin sales or MSTR stock sales, depending on market conditions. The company aims to retire preferred shares trading below the $100 stated amount at a discount.
How many STRC shares did Strategy repurchase during the week ending July 26?
Strategy repurchased 288,930 STRC shares for approximately $25 million at an average price of $86.52 per share during the week ending July 26, according to the company's July 27 announcement.
What is Strategy's USD Reserve balance and what does it cover?
Strategy's USD Reserve stands at $3.75 billion after a $525 million increase through MSTR common-stock sales. The reserve covers approximately 25 months of expected preferred dividend payments and remains dedicated to preferred dividends and debt obligations under the company's board-approved policy.
