Strategy Boosts Cash Cushion with $136M Preferred Stock Buyback

MicroStrategy, now rebranded as Strategy, has continued its strategy of active balance-sheet management by repurchasing $136.4 million worth of preferred stock. The company bought back 1,431,212 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock, trading under the ticker STRC, at a time when USD reserves climbed to $5.1 billion.

The firm's reserve growth is largely due to sales of Class A common stock (MSTR) through at-the-market offerings, which have consistently supported dividends, buybacks, and reserve expansion. Strategy has also tapped into its Digital Credit Securities Repurchase Program, which still has $516.6 million in capacity remaining for preferred stock repurchases.

The company's Bitcoin holdings remained unchanged, with approximately 840,447 BTC held at a cost basis of around $75,385 per coin. The decision to continue buying back shares reflects Strategy's focus on building its cash cushion and maintaining flexibility in the event of market downturns.