Strategy Doubles Buyback Program to $2B Amid Crypto Lull

Strategy, a company known for its large Bitcoin position, has doubled its Digital Credit Securities Repurchase Program to $2 billion. This move comes as the company revealed that it did not add to its Bitcoin treasury or tap its at-the-market equity program between August 31 and September 7. Instead, Strategy used this period to buy back its own STRC preferred shares trading below par, spending a total of $176.3 million.

The STRC shares were bought back at an average price of $97.70 per share, which is 2.3% below the security's par value of $100. This move allowed Strategy to reduce its liability by retiring the discounted shares, thereby avoiding the need to buy more Bitcoin at a higher price.

Strategy has been using its native liquidity to fund these moves, pulling from its $5.10 billion USD Reserve and $1.44 billion USD Cash balance. The company's Digital Credit Capital Framework, which went live on June 29, enables it to monetize its Bitcoin holdings tactically if needed.

The move has been seen as a sign of the company's focus on balance-sheet defense during periods of market stress. As Strategy continues to navigate the crypto market, it remains to be seen how long this defensive stance will last before management faces the decision to accumulate or defend again.