Strategy (NASDAQ: MSTR) has directed the entire $108.6 million raised from the sale of 1,690 Bitcoins last week to repurchase its STRC preferred shares, maintaining its aim to bring the stock back to its $100 par value. Chief Executive Michael Saylor reaffirmed the company’s continued focus on supporting the value of STRC as the buyback remains a top priority.
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AAPLMajor capital movements strengthen reserves
In addition to the Bitcoin sale, Strategy secured $653.1 million through the issuance of 6,585,682 MSTR shares as part of its at-the-market equity program. Of the total new capital, $650 million was allocated to its USD reserve, while $3.1 million was moved to its cash accounts. Strategy’s USD reserve grew from $4 billion to $4.65 billion within a single week.
A filing with the US Securities and Exchange Commission on Monday confirmed these transactions. Despite divesting some of its digital assets, Strategy continues to hold 840,447 BTC, far surpassing Twenty One Capital’s 43,514 BTC, reinforcing its position as the largest corporate Bitcoin holder.
Against the backdrop of these significant balance sheet moves, Strategy remains focused on capital flexibility to support both its preferred stock and ongoing operational needs.
Full Bitcoin sale proceeds support STRC buyback
This recent repurchase marks the third time Strategy has executed a buyback under its $1 billion Digital Credit Securities Repurchase Program, which was launched on June 29 as part of the firm’s Digital Credit Capital Framework.
The company sold the 1,690 BTC between August 3 and August 9 at an average price of $64,262 per Bitcoin, raising $108.6 million. This sum was used to buy back 1,152,020 STRC Series A perpetual “Stretch” preferred shares. With $785.2 million still available in the program, Strategy retains the ability to remove further STRC shares from the market if needed.
Strategy’s commitment to using all proceeds from the bitcoin sale for STRC buybacks is part of a broader effort to support preferred shareholders and stabilize the company’s financial structure.
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STRC nears target, management outlines expectations
STRC traded at $95.55 in the pre-market session, nearing its $100 target after hitting lower levels in July. Management has emphasized its aim for STRC to trade between $99 and $100 over time, with CEO Phong Le reiterating this goal during the latest earnings call.
Michael Saylor reported that the recent repurchase decreased what the company calls STRC’s “BTC Credit” by 10 basis points. He also noted that Strategy’s “USD Duration,” which measures how long the company’s reserves can support dividend and interest payments, increased by 143 days to reach 2.7 years. The company also holds $1 billion in authorization for repurchasing common MSTR stock.
STRC’s recovery toward $100 reflects the management’s coordinated buyback strategies and stronger cash reserves.
Ongoing shift from Bitcoin accumulation
The latest sale continues a strategic shift first observed at the end of May, when Strategy sold 32 Bitcoins for $2.5 million—its first sale since December 2022. The company’s capital framework, announced in June, allows up to $1.25 billion in Bitcoin disposals, with $429 million of that capacity now utilized.
Despite these disposals, Strategy has not purchased additional Bitcoin since June. Michael Saylor clarified that Strategy has never operated under a “never sell” policy, stating that the company expects to remain a net buyer of Bitcoin over time, even as it adopts a more active trading and capital management approach.
