TLDR
- Strategy’s STRC recovered above $90 after buybacks and a higher 12% annual preferred dividend boosted confidence.
- Strategy’s $3.75 billion reserve covers about 25 months of preferred dividend obligations at current payment levels.
- Strategy continues holding 847,363 Bitcoin while managing liquidity through reserves, dividends, and potential Bitcoin sales.
- STRC remains below its $100 par value despite recovering nearly 30% from late June lows.
- Investors continue watching Strategy’s buyback execution alongside Bitcoin prices and expanding preferred dividend commitments.
Strategy Inc.’s STRC preferred stock climbed above $90 for the first time since June 17 after the company expanded shareholder support through higher dividends, an ongoing buyback program, and a larger cash reserve.
STRC Extends Recovery as Buyback Program Continues
Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) opened at $92.32 in early August and later reached an intraday high of $92.80. The move marked the first consecutive trading sessions above $90 since mid-June and followed a recovery from lows near $73 recorded in late June.
The recovery came after Strategy authorized a share repurchase program of up to $1 billion for STRC. Company disclosures show approximately $975 million remained available under the authorization by late July, leaving substantial capacity for additional repurchases.
Strategy also increased the annual dividend on STRC to 12%, effective July 1, 2026. The preferred stock now pays semi-monthly dividends of $0.50 per share. The revised dividend structure followed the company’s efforts to strengthen investor confidence after the preferred shares declined during June.
Cash Reserve Supports Preferred Dividend Payments
Strategy reported that its U.S. dollar reserve has grown to approximately $3.75 billion. Based on the company’s disclosed dividend obligations, that reserve would cover about 25 months of preferred dividend payments at current levels.
The company also disclosed that annual preferred dividend commitments have increased to roughly $1.2 billion. Those obligations expanded from about $300 million over the past six months as Strategy issued additional preferred securities to raise capital.
Strategy has also maintained an authorized issuance limit of roughly $28.3 billion for STRC. The remaining capacity gives the company flexibility to issue additional preferred shares if management decides to raise more capital through the market.
Bitcoin Holdings Remain Central to Strategy’s Capital Plan
Strategy continues to hold approximately 847,363 Bitcoin, making it the largest corporate holder of the digital asset. Company disclosures show the average acquisition cost stands near $75,680 per Bitcoin.
With Bitcoin recently trading below that average purchase price, the company’s holdings remain below cost on paper. Strategy has disclosed plans that could include selling up to $1.25 billion worth of Bitcoin as part of its broader capital management framework.
The company has introduced what it calls the “Digital Credit Capital Framework,” which links Bitcoin holdings, cash reserves, and capital market activities to support liquidity management. The framework allows Strategy to manage financing needs while continuing its long-term Bitcoin strategy.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
