Strategy to Fund STRC Repurchases with Bitcoin or MSTR Stock

Strategy Inc., (Nasdaq: MSTR), may fund its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) repurchases through either bitcoin sales or MSTR stock sales, according to Executive Chairman Michael Saylor. The company plans to adjust the pace of STRC repurchases based on market price and liquidity, aiming for stronger liquidity, lower volatility, and sustainable independent demand.

Saylor explained that when STRC trades below its $100 stated amount, selling bitcoin could become an attractive financing option, allowing the company to retire preferred shares at a discount. This approach would also allow Strategy to keep STRC trading near its stated amount with high liquidity and low volatility.

In the latest repurchase, the company acquired 288,930 STRC shares for approximately $25 million at an average price of $86.52 per share, Strategy President and CEO Phong Le said that repurchases are attractive below $100 and can reduce future preferred dividend requirements at a discount.