STRC Surges Above $90 as Michael Saylor's Buyback Strategy Takes Hold

Strategy Inc's preferred stock STRC has broken above $90 for the first time since June 17, closing at $92.32 after reaching an intraday high of $92.80. This milestone marks a significant recovery from its 52-week low of $71.25 and suggests that Michael Saylor's buyback strategy is working to address concerns about the security's value.

STRC is a variable-rate perpetual preferred security designed to sit near $100, paying a high dividend without experiencing price volatility. The annual dividend yield is estimated at 10-12%, paid out semi-monthly. This makes it an attractive option for investors seeking economic exposure to Strategy Inc's bitcoin treasury activities.

The company's decision to suspend bitcoin purchases and increase its cash reserves on July 27 has been seen as a key factor in STRC's recent price action. By buying back its own preferred shares, Strategy Inc is reducing the number of outstanding shares and concentrating future dividend payments among fewer holders.