Strategy's $2 Billion STRC Rescue Fund Burns Through 64% in Failed Attempt to Maintain Price

Strategy, a company led by Michael Saylor, has burned through 64% of its $2 billion STRC rescue fund in an attempt to repurchase STRC shares and maintain a $100 per share price.

After 10 weeks of buying back shares, Strategy has spent $1.28 billion, leaving it with less than $724 million. Despite Saylor's claims that STRC is like a high-yield bank account, the share price has mostly traded below $99 over the past year.

The company's Digital Credit Securities Repurchase Program allows it to repurchase STRC, STRF, STRD, and STRK shares, but it has only repurchased STRC so far. STRC's price has responded to the corporate buying pressure, opening for trading at $99.18 after falling below $72 in June.

Saylor has used common shareholder dilution to fund the buybacks, which has become more expensive over time. Since the program started, Strategy has repurchased 13.3 million STRC shares, roughly one in eight outstanding shares.