STRC Holds Steady Near $100 as MSTR Stock Swings
Michael Saylor's Strategy at MicroStrategy (MSTR) has been successful in keeping its common stock, STRC, near $100 despite Bitcoin's price fluctuations. According to a recent article by Strategy, this is achieved through a combination of buybacks and dividend payments.
When STRC trades above $100, the company can sell more shares for capital, which helps maintain a stable dollar income. Conversely, when the stock price slips below $100, Strategy can buy back shares at a discount, reducing future dividend bills.
The strategy also involves keeping two separate pools of dollars: one reserved solely for dividends and interest, and another for buybacks or purchasing more Bitcoin. This approach ensures that the same dollar is not counted twice.
Recently, STRC's price dipped below $80 in June but was subsequently boosted back into the high $90s by mid-September through the implementation of buybacks. In contrast, MSTR stock has been experiencing volatility, with a 9% drop to $154 from nearly $170 just a week ago.