Strategy Buys Back $25M of STRC, Signals More Repurchases While Shares Trade Below $100

Strategy said it repurchased $25 million of STRC preferred stock and lifted its U.S. dollar reserve to $3.75 billion, as it uses equity issuance to bolster liquidity and support its preferred capital structure. Between July 20 and July 26, the company bought 288,930 STRC shares at an average price of $86.52, marking its first transaction under the Digital Credit Securities Repurchase Program. Management said buybacks could pick up at wider discounts and slow as the price approaches the $100 stated value. Retiring preferred shares below $100 lowers future dividend obligations without paying full stated value. CEO Phong Le called the repurchases an attractive capital allocation at current discounts. Strategy said it expects to continue buying STRC while it trades below $100, subject to liquidity and market conditions. Company policy also bars new STRC issuance below $100. Roughly $975 million remains available under the repurchase program, which covers preferred securities, carries no minimum purchase requirement, and can be revised, paused, or ended at any time. To build cash, Strategy sold 5,429,160 MSTR shares through its at-the-market program, generating $544.5 million in net proceeds. It added $525 million to its USD reserve during the week ending July 26, raising the balance from $3.225 billion to $3.75 billion. The company said $22.98 billion of MSTR issuance capacity remained available. The cash reserve is intended to support preferred-stock dividends and interest payments on outstanding debt. Strategy said the current balance covers about 2.1 years, or nearly 25 months, of expected preferred dividends, including expected proceeds from unsettled ATM sales. The company noted the reserve cannot be used to fund STRC repurchases under the board-approved policy, and said future buybacks may instead rely on additional MSTR stock sales or Bitcoin sales, depending on market conditions. Strategy reported no Bitcoin purchases or sales in the latest period. Holdings were unchanged at 843,775 BTC, acquired for $63.69 billion at an average purchase price of $75,476 per Bitcoin including fees and expenses. The company said the pause reflects a focus on liquidity and liability management over new Bitcoin accumulation. Strategy also said it plans to recommend maintaining STRC's 12% annualized dividend rate until shares trade near $100 for a sustained period, subject to board approval. Separately, the company has $1 billion available under its MSTR stock repurchase authorization and reported no common-share buybacks last week. On Monday, MSTR shares rose 7.6% as Bitcoin traded near $65,000.