Saylor's $25M STRC Buyback Sparks Criticism Over Bitcoin Strategy Shift
MSTR sits 15% above its 52-week low of $81.81.
Summary
Michael Saylor's Strategy Inc repurchased $25 million of its STRC preferred shares, drawing sharp criticism from a market analyst who sees it as a misallocation of capital. The analyst argues STRC, a floating-rate security with no contractual floor, is unlikely to return to its $100 issue price, making the buyback an inefficient use of funds that merely creates a short-term price bump. This follows a series of aggressive Bitcoin acquisitions and ATM equity sales, but now capital appears redirected to prop up the preferred shares rather than expanding the company's core Bitcoin treasury. The move raises questions about management's priorities, especially as selling MSTR shares at around 1x net asset value to support STRC could dilute long-term shareholder value. With heavy selling pressure expected if STRC approaches $95-96 from underwater investors, sustained recovery looks difficult. Investors will likely press for clarity on why defending STRC takes precedence over Bitcoin accumulation in upcoming communications.
At the time of this announcement, MSTR was trading at $94.33 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $34.6B. The 52-week trading range was $81.81 to $417.01. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Coinpedia.