Strategy Spends $950 Million on Buybacks, STRC on Track to Return to $100 Par Value

Odaily News — Strategy is using large-scale buybacks to push the price of its perpetual preferred stock STRC back toward its $100 par value, in a bid to restore its Bitcoin financing capacity. Between July 20 and September 13, Strategy repurchased a total of 9.96 million STRC shares for approximately $950 million, accounting for about 18% of the trading volume during the same period. Of that, roughly $765 million can be traced to sales of MSTR common stock, while another approximately $161 million came from Bitcoin reductions.STRC had previously fallen to around $70, and has recently rebounded to as high as about $99. Analysts believe that only when STRC's price approaches or climbs above its $100 par value can Strategy effectively reissue the security and use the proceeds to purchase Bitcoin. However, after Strategy pulls back and reduces its buybacks, whether STRC can continue to hold near par value remains uncertain. (Bloomberg)