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Strategy scrambles to close STRC gap to par as buyback runway shrinks

Despite spending $635.2 million on repurchases, STRC still trades around $97, leaving only $364.8 million of its $1 billion authorization and intensifying the need to reach $100 par by an informal Sept. 8 target.

Reported · Written up by our desk · Market Structure

Michael Saylor has about a week to help Strategy close the remaining gap for STRC to return to $100 par value, with the preferred security still hovering near $97 even after the company deployed $635.2 million in aggressive buybacks. According to CryptoSlate, Strategy’s informal path to par was originally tied to a timeline calculated from STRC’s latest recovery starting May 28.

The company restarted Bitcoin accumulation after a two-month freeze, signaling it is preparing to support both its preferred-stock obligations and its broader balance sheet needs. CryptoSlate adds that the challenge is occurring as more competing Bitcoin-linked yield products enter the market.

Strategy’s buyback approach has become more capital intensive as STRC gets closer to $100, with the economics of the campaign deteriorating. While buying below par still reduces the company’s stated value and eliminates an annualized 12% dividend obligation for shares retired under $100, Strategy’s remaining capacity is limited.

CryptoSlate reports that Strategy had just $364.8 million left under its $1 billion authorization based on its recent pace of spending. To fund the preferred-stock effort, it relied on MSTR common stock and Bitcoin, including selling a net 6,916 Bitcoin between late June and early August and selling 4.53 million MSTR shares for $602.8 million in net proceeds, parts of which were used for the latest STRC repurchase and dividends.

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