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Strategy expands preferred-stock buyback to $2 billion for STRC
Board approval lifts the preferred repurchase cap, after Strategy bought 1.81 million STRC shares for $176.3 million from Aug. 31 to Sept. 7.
Strategy’s board has doubled the size of its preferred-stock repurchase program to $2 billion to support STRC, as the Sept. 8 recovery milestone arrived with STRC still trading below its $100 stated value, according to CryptoSlate.
STRC entered Tuesday around $97 to $98, leaving the variable-rate preferred roughly 2% below the level Strategy has spent much of the summer trying to restore. CryptoSlate said the company’s earlier $1 billion authorization was nearing its limit after seven weeks of increasingly large purchases, prompting the increase in the repurchase ceiling.
From Aug. 31 to Sept. 7, Strategy acquired 1.81 million STRC shares for $176.3 million, or about $97.36 on average. CryptoSlate reported cumulative spending since July of roughly $811.5 million, which means about $188.5 million would have remained under the original authorization before the latest approval.
The new $2 billion cap leaves Strategy with about $1.19 billion available across its preferred-stock repurchase program. CryptoSlate noted the spending pace has shifted as STRC approached par, with the latest purchase continuing to raise the dollar cost of supporting STRC even as the discount narrowed to less than 3%.