Strategy Spends $635M on STRC Buybacks, Resumes Bitcoin Purchases
MSTR sits 58% above its 52-week low of $81.81.
Summary
Strategy has deployed $635.2 million to repurchase its STRC perpetual preferred stock, which still trades below its $100 par value at $97.34. The latest buyback tranche was $151.8 million at an average price of $97.48, leaving $364.8 million under the $1 billion authorization. The company also resumed Bitcoin accumulation after a two-month pause, buying 4,603 BTC for $369.7 million at around $80,000, bringing total holdings to 845,050 BTC. This follows a period of selling Bitcoin below cost to fund preferred dividends and raising $333.7 million in common stock. Competitive pressure from Strive's SATA preferred, which offers a 13% daily dividend and trades at par, is a key challenge for STRC. The buyback program is a significant capital allocation decision, but the stock remains below par, and the company is spending capital to support the price rather than raising capital through it. Watch whether STRC can reach par without further repurchase spending and whether Bitcoin holds above Strategy's $75,385 average cost basis.
At the time of this announcement, MSTR was trading at $129.12 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $51.1B. The 52-week trading range was $81.81 to $365.21. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Binance News.