Strategy Jumps on Preferred Stock Repurchase While Skipping Bitcoin Buy

Strategy Skips Bitcoin Buy to Repurchase $176M STRC Stock

Michael Saylor's Strategy, the largest corporate Bitcoin treasury, has made an unexpected move by skipping its weekly Bitcoin acquisition. Instead, it repurchased $176 million of its preferred STRC stock between Aug. 31 and Sept. 7.

The company bought back 1.8 million STRC shares at an aggregate price of $176.3 million. Strategy also doubled the size of its Digital Credit Securities Repurchase Program to $2 billion, leaving its Bitcoin holdings unchanged at 845,050 BTC acquired for a total of $63.6 billion.

Last week, Strategy made its first Bitcoin purchase since mid-June, acquiring $370 million worth of the cryptocurrency.

The company's STRC stock is trading below par value, which limits its ability to raise funds through STRC sales and may force it to increase its dividend rate further. Strategy unveiled a capital framework in June that allows for Bitcoin sales to fund dividends and increased the annual dividend rate on STRC preferred stock to 12%.