Strategy Doubles Preferred-Stock Repurchase Program to $2 Billion

Strategy has doubled its preferred-stock repurchase authorization to $2 billion following a period of sustained buying. The decision comes as the company’s STRC security remains below its $100 stated value, despite the company spending approximately $811.5 million on repurchases since July.

The expanded program provides Strategy with $1.19 billion in remaining capacity to support the security. The company initially planned to reduce its market presence as the discount to par narrowed, but recent data shows the firm has instead increased its weekly spending, with the most recent purchase totaling $176.3 million.

The ongoing intervention has impacted the company's capital allocation strategy. While Strategy recently resumed Bitcoin accumulation, the latest week saw no Bitcoin purchases and no MSTR share sales. Instead, the company utilized its USD Cash balance to fund the STRC buybacks.

Restoring STRC to its $100 par value is a priority for the company, as the security is intended to function as a perpetual funding vehicle. Strategy currently maintains a policy against issuing additional STRC shares while they trade below par. A return to par would allow the company to resume using the security to raise capital, reducing its reliance on MSTR common stock sales.

As of Sept. 7, Strategy held 845,050 Bitcoin, acquired for $63.73 billion. The company continues to monitor the market to determine how much additional capital is required to sustain STRC near its stated value and reopen its issuance role.