Strategy’s STRC Preferred Security Nears Par Value Amid Accelerated Buybacks

Michael Saylor faces a tight deadline to bring Strategy’s preferred security (STRC) back to its $100 par value by early September. The company has spent $635.2 million on aggressive buybacks, yet the security still trades around $97.

Buyback Campaign Accelerates as Discount Narrows

The original plan called for larger purchases at deeper discounts, then tapering as the price approached $100. Instead, weekly spending has risen as the discount shrank:

• July 20‑26: $25 million at $86.52 (13.48% discount)
• July 27‑Aug 2: $81.2 million at $89.02 (10.98% discount)
• Aug 3‑9: $108.6 million at $94.27 (5.73% discount)
• Aug 10‑16: $132.2 million at $95.20 (4.80% discount)
• Aug 17‑23: $136.4 million at $95.30 (4.70% discount)
• Aug 24‑30: $151.8 million at $97.48 (2.52% discount)

With $364.8 million remaining under the $1 billion authorization, the runway could shrink quickly if the current pace continues.

Funding Sources: MSTR Stock and Bitcoin Holdings

Strategy has relied on two main sources to finance the buyback effort:

• Sale of 4.53 million MSTR shares generated $602.8 million, of which $151.8 million funded the latest STRC repurchase and $50.7 million covered dividends.
• Bitcoin transactions: a net sale of 6,916 BTC between late June and early August funded preferred‑stock obligations, while a recent purchase of 4,603 BTC (costing $369.7 million) raised the total holding to 845,050 BTC.

Strategy also allocated $30 million to a flexible cash pool and set aside a $5.1 billion reserve for preferred dividends and debt interest, backed by a $1.6 billion cash pool.

Institutional Adoption and Growing Competition

STRC has attracted significant institutional interest. By July 2026, $756 million of STRC was held across three major U.S. preferred‑stock ETFs (BlackRock’s PFF, Virtus InfraCap’s PFFA, and VanEck’s PFXF), making it the largest individual holding in each fund.

However, the market for Bitcoin‑linked yield products is becoming crowded. Competitors such as Strive’s SATA preferred stock (13% annual dividend) and Metaplanet’s broader Bitcoin‑credit platform are expanding the menu of income‑producing securities.

Key Test Ahead

The next critical step is whether external investors will sustain STRC at $100 once Strategy reduces its own purchases. If demand holds, STRC can resume its intended role as a funding source for further Bitcoin acquisitions. If demand wanes, maintaining the price may require continued issuer support.