Strategy suspends Bitcoin buys, repurchases $25M of STRC

Strategy paused its Bitcoin purchases for five weeks and repurchased 288,930 shares of its STRC preferred stock for $25 million between July 20 and July 26, according to a July 27 SEC filing. The shares were bought at an average price of $86.52 and the transaction is the first disclosed use of a $1 billion preferred-stock repurchase program approved last month.

The company, formerly known as MicroStrategy, has not bought Bitcoin during the five-week span, its longest gap since 2024. Strategy holds 843,775 BTC, acquired at an average price of $75,476 per coin, representing about $63.69 billion in aggregate cost.

STRC is a variable-rate perpetual preferred stock that traded below its $100 stated amount in recent weeks, briefly falling under $77 before recovering to about $88 at the time of the filing. The security carries a 12% annualized dividend rate; management plans to recommend keeping that rate until the shares trade sustainably near $100 with stronger liquidity and independent investor demand.

The filing states repurchases will be funded outside the USD Reserve, including through sales of MSTR common stock and Bitcoin, depending on market conditions. In the filing, Chief Executive Michael Saylor wrote: “Repurchases will be funded outside the USD Reserve, including through MSTR and BTC sales, based on market conditions. Our objective is for STRC to trade near $100 with high liquidity, low volatility, and healthy, sustainable independent demand. We will not issue below $100.”

At the July buyback price, Strategy retired the preferred stock at about 86.5 cents for every dollar of stated value. Chief Financial Officer Phong Le noted repurchases below $100 can reduce future preferred dividend obligations while allowing the company to remove the securities from its capital structure at a discount.

After the $25 million purchase, roughly $975 million remains available under the Digital Credit Securities Repurchase Program. The company said it may increase repurchases if discounts widen and taper purchases as STRC approaches $100. Future activity will depend on STRC’s price and liquidity, available capital and broader market conditions; Strategy can modify, suspend or terminate the program.

Separately, Strategy increased its USD Reserve to a record $3.75 billion from $3.225 billion by selling 5,429,160 shares of its Class A common stock through an at-the-market program. The offering generated about $544.5 million in net proceeds, most of which were transferred into the reserve.

Management says the USD Reserve is dedicated to servicing preferred-stock dividends and interest on outstanding debt and is sufficient to cover roughly 25 months of expected preferred dividend payments. The company described the larger reserve and the repurchase authority as complementary: the reserve strengthens cash coverage for recurring obligations, while repurchases can reduce discounted preferred-stock balances.