Strategy doubles STRC buyback to $2 billion

Strategy’s board approved a increase to the company’s preferred-stock repurchase program on Tuesday, raising the ceiling to $2 billion after seven weeks of rising purchases had nearly exhausted the original $1 billion authorization.

The new authorization adds $1.19 billion of repurchase capacity. Company filings and market data show Strategy had spent roughly $811.5 million on STRC repurchases since July. Between Aug. 31 and Sept. 7 the company acquired 1.81 million STRC shares for $176.3 million, at an average price of about $97.36. At the start of the program STRC traded near $71; by Tuesday the preferred was trading around $97–$98, roughly 2% below its $100 stated value.

The weekly pattern of purchases grew larger while the discount narrowed. Strategy spent $25 million in the first week at an average price of $86.52, then made weekly purchases of about $81.2 million, $108.6 million, $132.2 million, $136.4 million and $151.8 million, followed by the $176.3 million purchase in the most recent week. Without the increase to the program, roughly $188.5 million would have remained under the original $1 billion authorization.

Each STRC share retired below the $100 stated value removes $100 of preferred capital and the related dividend obligation. That reduction in capital and dividend liability occurs at a discount while the preferred trades below par. The larger authorization allows Strategy to continue repurchases even as the economic advantage of retiring shares at a discount declines.

Capital allocation shifted between reporting periods. In the prior period the company raised $602.8 million through at-the-market sales of its common stock, used $151.8 million to repurchase STRC and deployed $369.7 million to buy 4,603 Bitcoin. In the latest week Strategy reported no at-the-market sales and no Bitcoin purchases; the $176.3 million used for STRC repurchases came from the company’s USD Cash balance, which stood at $1.44 billion at period end.

Strategy maintains a separate USD Reserve of $5.10 billion intended to support preferred-stock dividends and interest on outstanding debt. The USD Cash balance can be used to acquire Bitcoin, increase the USD Reserve, manage capital structure and fund other treasury purposes. By Sept. 7 the company held 845,050 Bitcoin, acquired for $63.73 billion at an average price of about $75,412.

STRC was designed as a perpetual funding vehicle with a variable dividend intended to encourage the market price to remain near its $100 stated value. Strategy has a policy against issuing additional STRC while it trades below $100. STRC’s initial 2025 offering expanded from an expected 5 million shares to more than 28 million after strong demand, raising about $2.52 billion. The security has a market value of roughly $10 billion and remains a central element of the company’s capital structure.

Michael Saylor had identified Sept. 8 as an informal milestone, comparing the recovery timeline to the roughly 70 trading days it initially took STRC to move from a $90 offering price to $100. The board increased the repurchase authorization as STRC approached par and weekly purchases continued to rise.