Strategy's Stretch Rebounds Over 30%, Bitcoin Price Stabilizes

Strategy's perpetual preferred stock, Stretch (STRC), has rebounded by over 30% from its June low of $71. The current price is around $94, having gained another 1% on Wednesday.

The company sold 5,226 BTC for $321 million across three transactions, reducing its bitcoin holdings from 847,363 to approximately 842,137 BTC. This move was intended to demonstrate that Strategy can use Bitcoin to meet its dividend obligations rather than treating it as an idle asset.

Strategy has also repurchased $106 million of STRC and increased its U.S. dollar reserve by another $250 million on Monday, bringing the total to $4 billion. This provides approximately 2.3 years of coverage for dividend obligations on its preferred securities.