Strategy Repurchases $176M in STRC Shares, Expands Digital Credit Securities Program
Strategy, a US-based Bitcoin treasury company, has repurchased approximately $176 million worth of its perpetual preferred shares, STRC. This move comes as part of the company's Digital Credit Securities Repurchase Program, which was increased in size from $1 billion to $2 billion.
The repurchased STRC shares were purchased at an average price of around $86.52 per share, with a total of 181,885 shares bought back. This is not the first time Strategy has repurchased STRC shares, as it did so in July for approximately $25 million.
Strategy's Digital Credit Securities Repurchase Program allows the company to buy back its perpetual preferred shares, including STRC, STRF, STRD, and STRK, at a price that is lower than their stated value of $100. The program aims to reduce the company's future priority share dividend burden while also strengthening its capital structure.
The repurchased funds were drawn from Strategy's USD Cash reserves, which totaled around $144 million as of September 7th. This move comes as part of the company's efforts to manage its capital and balance sheet, with a focus on maintaining a strong cash position and reducing its reliance on Bitcoin sales for liquidity.