Strategy Opens Door to Bitcoin Sales to Fund Preferred Stock Repurchases

Strategy Inc., led by Executive Chairman Michael Saylor, has announced a new strategy for financing its preferred stock repurchases. According to Saylor, future STRC (Variable Rate Series A Perpetual Stretch Preferred Stock) repurchases may be funded through either MSTR (Strategy's common stock) sales or bitcoin sales, depending on market conditions.

The company aims to keep STRC trading near its $100 stated amount with high liquidity, low volatility, and sustainable independent demand. Strategy has already repurchased 288,930 STRC shares for approximately $25 million at an average price of $86.52 per share during the week ending July 26.

Strategy President and CEO Phong Le explained that repurchases below $100 represent an attractive allocation of capital because they can reduce future preferred dividend requirements at a discount.