Strategy Doubles Down on STRC Buyback Program with $176M Repurchase

Strategy's founder Michael Saylor announced on Tuesday that his company had repurchased $176 million of STRC and doubled its securities repurchase program to $2 billion. This move affects Strategy's U.S. securities and its broader effort to finance a massive Bitcoin position. As of September 7, Strategy disclosed that it held 845,050 Bitcoins and $6.5 billion in U.S. dollar assets.

The company's strategy is to support its financing with repurchased STRC and increased buyback capacity. Saylor pointed out that Strategy's 'BTC Credit' metric tightened to 53 basis points (bps) as a result of this move, assuming 10% annual Bitcoin returns, 40% volatility, and a price of $79,809.

Bitcoin critic Peter Schiff questioned the demand for STRC despite its 12% dividend. He argued that even if Strategy pushes STRC back to $100, it won't address the underlying issue of lackluster demand. If investors sell their shares, the price would drop again, requiring Strategy to resume buybacks.