Via cryptotimes.io
Strategy boosts USD reserves to $4B while repurchasing $81M of STRC preferred stock
Michael Saylor's firm now holds 842,138 BTC and is buying back its own preferred shares trading below par value
Strategy Inc, the company formerly known as MicroStrategy, has pushed its USD cash reserves to $4 billion while simultaneously spending $81 million to repurchase shares of its own preferred stock, STRC.
The company also holds 842,138 BTC, acquired at an average cost of approximately $75,419 to $75,482 per coin.
The STRC buyback play
Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, mercifully shortened to STRC, is a preferred equity instrument that pays a 12% annual dividend distributed semi-monthly in cash.
The company announced its first round of STRC buybacks on July 27, 2026, revealing it had repurchased 288,930 shares for roughly $25 million between July 20 and 26. The average price came in at about $86.52 per share.
The total STRC repurchase figure now sits at $81 million, part of a larger $1 billion buyback program the company has authorized.
STRC has been trading below its par value. When a company buys back its own shares below par, it’s essentially getting a discount on eliminating future obligations. Every STRC share repurchased is one fewer share requiring that 12% annual dividend payment.
Since launching its preferred stock products beginning in early 2025, Strategy has paid out over $693 million in preferred distributions.
The Bitcoin mountain keeps growing
Strategy’s Bitcoin holdings now stand at 842,138 BTC, acquired at an average cost of approximately $75,419 to $75,482 per coin. The $4 billion in USD reserves has been bolstered primarily through common-stock transactions.
What this means for investors
For STRC holders specifically, the buyback creates a natural price floor. Knowing that Strategy is an active buyer in the open market at prices around $86.52 per share provides some downside protection alongside the 12% yield.
The risk that investors should keep an eye on is concentration. Strategy’s entire corporate thesis is essentially a leveraged bet on Bitcoin’s long-term appreciation, financed through equity instruments like STRC and common stock offerings. The company has paid out over $693 million in preferred distributions since launching its preferred stock program in early 2025.
The $1 billion buyback authorization signals management confidence in its liquidity position to commit significant capital to reducing its preferred stock footprint.