Strategy Deploys $635M to Buy Back STRC as Shares Trade Below Par

Strategy’s perpetual preferred stock Stretch, or STRC, remains below its $100 par value despite the company continuing to repurchase the shares.

The bitcoin treasury firm has spent $635.2 million on STRC buybacks so far. The preferred stock is currently trading around $97.34, up significantly from a low near $71 after Strategy authorized as much as $1 billion for repurchases.

As STRC has moved closer to par, Strategy has increased the size of its purchases. Its most recent buyback amounted to $151.8 million, with an average purchase price of $97.48 per share.

Strategy also returned to the Bitcoin market after a two-month pause, purchasing 4,603 BTC for $369.7 million last week at an average price of roughly $80,000. The acquisition lifted the company’s Bitcoin holdings to 845,050 BTC, worth about $65.9 billion.

One factor weighing on STRC may be competition from Strive’s SATA preferred stock. SATA offers an annualized dividend of 13%, with payments made daily, compared with STRC’s 12% annualized rate and semi-monthly payments.

SATA has traded around its $100 par value for more than a week, enabling Strive to sell additional shares through its at-the-market offering. The capital raised has helped finance the company’s purchase of 1,800 BTC over the past week.

The difference is also visible in the companies’ common stocks. Strive’s ASST shares are up about 60% so far this year, while Strategy’s MSTR has declined roughly 15%.

Despite Strategy’s aggressive STRC repurchases, the preferred stock continues to trade below its $100 target, while SATA’s higher dividend yield has helped it maintain its par value.