Strategy's STRC Buybacks Draw Scrutiny Amid Market Share Concerns

Strategy's (NASDAQ: MSTR) stock price fell by 4% in pre-market trading on September 15, despite STRC preferred stock nearing its par value of $100 after continuous buybacks. The company has spent $950.8 million repurchasing STRC since July 2026, pushing the stock price up 27% from its June 2026 low.

Analysts are now questioning the sustainability of this model and whether there is actual demand for the shares. Brian Brookshire noted that Strategy's nearly 20% market share in STRC volumes between July and September 2026 may not be healthy, while analyst Maxi suggested retiring STRC and focusing on accumulating Bitcoin reserves instead.

Despite criticism, Barclays analyst Nick Cremo reiterated a buy rating on MSTR stock, raising the target from $125 to $160. This comes after Canaccord upgraded its MSTR stock target from $175 to $179 last week, amid Strategy's market cap increasing to $54.4 billion.

The price of MSTR stock is testing a key resistance level at $142, with a bullish setup suggesting it could move to the May high of $189 if cleared. However, an RSI reading of 51 suggests that momentum is slightly favoring bearish, potentially leading to a drop to $119 after a sell-off.