Strategy Ditches Bitcoin for Preferred Stock Repurchase

Strategy, the world's largest Bitcoin treasury company, has made some interesting moves in the past week. Instead of buying more Bitcoin, it repurchased $139 million worth of its preferred stock STRC.

The company's founder, Michael Saylor, wrote on X that Strategy had 'repurchased $139M of STRC' and still holds 845,050 BTC and $6.4 billion in USD assets.

STRC is a variable-rate perpetual preferred stock issued by Strategy, which pays holders a cash dividend and is collateralized by the company's Bitcoin and U.S. dollar reserves.

The goal of buying STRC below $100 par is to cut future cash dividends and tighten Strategy's credit stack. Saylor hopes that STRC will climb back toward par, allowing Strategy to issue more shares and use the proceeds to buy even more BTC.