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Strategy narrows STRC discount with $108.6 million bitcoin-funded buy

Strategy traded STRC around $95 Monday, after late-June lows near $74, and still has $785.2 million left under its $1 billion repurchase program.

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Strategy is steadily moving its STRC preferred stock closer to its $100 target by increasing purchases, with CryptoSlate noting STRC traded around $95 on Monday. The recovery follows a late-June low of about $74 as the company combined open-market repurchases with a 12% annualized dividend to narrow the security’s discount.

Over the past three weeks, Strategy acquired about 2.3 million STRC shares worth roughly $214.8 million, including a week ended Aug. 9 where it spent $108.6 million to buy 1.1 million shares. Strategy said it still has $785.2 million available under its $1 billion Digital Credit Securities Repurchase Program it authorized in June.

To finance the preferred stock purchases, Strategy has increasingly used its Bitcoin treasury, according to CryptoSlate. In the week ended Aug. 9, the company sold 1,690 BTC for $108.6 million at an average price of $64,262, then earlier sold 1,638 BTC for $104.7 million at an average price reported as similar in timing.

The proceeds were used partly to fund STRC repurchases, with about $52.3 million of earlier BTC sale proceeds going toward an $81.2 million STRC repurchase, and MSTR issuance covering the remainder. Over the past two weeks, Strategy sold 3,328 BTC for about $213.3 million while spending $189.8 million on STRC, leaving its Bitcoin holdings at 840,447 BTC from 842,138 BTC a week earlier.

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