Strategy Buys Back $139M Worth of STRC Stock Amid Strong Bitcoin Holdings

Strategy's recent move to repurchase $139 million worth of its STRC preferred stock has put it back on track, according to a report. This comes after its Bitcoin holdings reached 845,050 BTC, valued at $65.83 billion following the purchase of 4,603 BTC on August 31st.

The company's treasury now holds $6.4 billion in USD assets, giving it a substantial liquidity cushion. STRC's credit risk or safety cushion behind the preferred stock stands at a 57-basis-point (0.57%) due to assumptions that Bitcoin will return 10% annually, have 40% volatility, and trade at $77,266.

This move is seen as strengthening Strategy's balance sheet, reducing some STRC obligations, and maintaining substantial assets to support its financial commitments. As Michael Saylor's company continues to advocate for Bitcoin as a form of 'digital capital' and a potential global reserve asset, MSTR's liquidity cushion expands with the average daily trading volume increasing by 13 times since 2023.