Strategy Doubles Stock Buyback to $2 Billion in Bid to Reach STRC Par

Strategy has doubled its stock buyback program to $2 billion as it continues to try and pull its STRC shares back up to their stated value of $100. The move comes after Strategy's board decided to extend a campaign that was approaching the limits of its original $1 billion authorization.

The decision is significant because STRC is a perpetual funding vehicle whose variable dividend can be adjusted to encourage the market price to remain near its $100 stated value. However, Strategy has also adopted a policy against issuing additional STRC below par, meaning the security cannot fully serve its intended financing role while it trades at a discount.

The company spent $176.3 million on STRC shares between Aug. 31 and Sept. 7, implying an average price of about $97.36. Cumulative spending since July has now reached roughly $811.5 million. Without this latest increase, only about $188.5 million would have remained under the original $1 billion authorization.

The spending pattern has moved in the opposite direction from the framework management laid out when the intervention began. Strategy initially planned to buy more aggressively when STRC traded well below $100, where repurchases offered better economics, before reducing its presence as the discount narrowed and outside demand took over.