MSTR Stock Slumps on Preferred Share Buyback, Distracting from Bitcoin

Strategy Inc.'s MSTR stock plummeted around 3% in pre-market trading after the company revealed it spent $635.2 million on buying back its STRC preferred stock.

This move pulled cash away from Bitcoin purchases, which is a core reason investors own the stock.

The STRC buyback aims to reduce supply and push the price up, but it remains stuck below its target value of $100, currently trading near $97.34.

STRC's competitor SATA, issued by Strive, has been gaining traction with a 13% annual dividend, attracting investors away from STRC's 12% twice-monthly payout.