Saylor's Strategy Halted: $139M Repurchase of STRC Preferred Shares
Michael Saylor's Strategy, formerly MicroStrategy, has halted its weekly Bitcoin purchases. The company did not add to its holdings of 845,050 BTC.
In a strategic move, Saylor directed $139 million towards repurchasing the company's own STRC preferred shares from its treasury, which currently holds $6.4 billion in dollar-denominated assets with a duration of 3.9 years.
The repurchase is aimed at optimizing the debt burden by deploying excess fiat cash into the company's securities. Saylor explained that assuming a Bitcoin price of $77,266 and an annual return of 10%, along with volatility of 40%, the credit spread on STRC shares stands at 57 basis points.
This strategy allows for a variable yield through treasury operations while isolating credit returns from the fluctuations in BTC's price. In contrast, Strive Inc., a new competitor, has taken a different approach by issuing preferred equity instruments to purchase Bitcoin without taking on conventional debt.