Strategy Puts Bitcoin Sales Option on Table as MSTR Stock Repurchase Plan

Strategy Inc., the company behind the MSTR ticker, has revealed that it may finance future repurchases of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) through either Bitcoin sales or MSTR stock sales.

The decision will depend on market conditions, according to Executive Chairman Michael Saylor. STRC is currently trading below $100, and Strategy aims to keep it trading near this amount with high liquidity, low volatility, and sustainable independent demand.

Saylor explained that the company does not intend to issue additional STRC below $100. Instead, it will use repurchases to retire preferred shares at a discount, reducing future dividend requirements.

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. The company's President and CEO Phong Le stated that repurchases represent an attractive allocation of capital when prices are below $100 per share.

The USD Reserve has been increased by $525 million through MSTR common-stock sales, raising its balance to a record $3.75 billion. This reserve covers approximately 25 months of expected preferred dividend payments and remains dedicated to preferred dividends and debt obligations.