Strategy has $785M to close STRC’s final $5 gap

Strategy holds $785.2 million of remaining capacity under a $1 billion repurchase program to buy back STRC preferred stock, aiming to close a roughly $5 gap to a $100 target. STRC traded near $95 after the company combined open-market repurchases with a 12% annualized dividend.

Over the past three weeks Strategy bought about 2.3 million STRC shares for roughly $214.8 million. The largest purchase came in the week ended Aug. 9, when the firm spent $108.6 million to buy about 1.1 million shares. Earlier purchases in the period totaled about $25 million and $81.2 million. The preferred recovered from a late-June low near $74 to trade around $95 as the company increased support for the security.

To fund the repurchases, Strategy sold portions of its Bitcoin holdings. In the week ended Aug. 9 the company sold 1,690 BTC for $108.6 million at an average price of $64,262. The prior week it sold 1,638 BTC for $104.7 million. Together those two sales amounted to about 3,328 BTC for approximately $213.3 million, while Strategy spent roughly $189.8 million on STRC during the same two-week span.

The sales reduced Strategy’s Bitcoin holdings to 840,447 BTC from 842,138 BTC a week earlier. The company’s remaining coins were acquired for about $63.36 billion at an average cost of $75,385. Strategy has sold 6,948 BTC so far this year; its holdings peaked at 847,363 BTC in June.

Strategy also raised cash through common-stock issuance. The company sold 6.5 million MSTR shares via an at-the-market program, generating $653.1 million in proceeds and directing $650 million into its U.S. dollar reserve. The reserve increased to $4.65 billion from $4.0 billion a week earlier. Executive Chairman Michael Saylor noted the reserve’s duration extended by about 143 days to roughly 2.7 years and that the company now holds enough dollars to cover nearly three years of current preferred dividends and interest obligations.

The firm reported roughly $22 billion of remaining capacity across its MSTR at-the-market programs and an unused $1 billion authorization for common-stock repurchases in addition to the $785.2 million left under the Digital Credit Securities Repurchase Program.

STRC is now within about $5 of its $100 target. Management noted on its second-quarter call that after STRC’s 2025 launch the security took about 70 trading days to reach par; applying a similar timeline would point to early September. In a company update CEO Phong Le wrote that the USD reserve and its duration are at all-time highs and that the firm added nearly $3.8 billion to the reserve in 2.5 months. Management retains the authorized capacity to continue supporting STRC if needed.