Strategy Drops Bitcoin Buying to Repurchase Preferred Shares

Strategy, the largest corporate Bitcoin treasury, made an unusual decision last week. Instead of buying more Bitcoin, it repurchased $176 million worth of its preferred STRC stock.

The company acquired 1.8 million STRC shares between August 31 and September 7, according to a filing with the US Securities and Exchange Commission.

This move is significant because STRC's share price was trading below par value at $97.70, a 2.3% discount from its intended $100 par value. This limits Strategy's ability to raise funds through STRC sales and may force the company to increase its dividend rate.

Strategy has been accumulating Bitcoin since June, with total holdings sitting at 845,050 BTC acquired for $63.6 billion at an average price of $75,412 per coin.