STRC Stays Steady as MSTR Takes Hit

Strategy's setup for its stock, STRC, has been successful in keeping it stable and near $100. This is despite the volatility of MSTR stock, which has taken a hit in recent days.

The strategy involves having two separate piles of dollars: one reserved for dividends and interest, and another for buybacks or investing in Bitcoin. This way, the same dollar isn't counted twice.

When STRC's price drops below $100, Strategy can buy back shares at a discount, which helps reduce future dividend bills. Conversely, when the price rises above $100, the company can sell more shares for capital.

In June, STRC dropped to around $80 before recovering to the high $90s by mid-September thanks to buybacks.