Strategy Spends $635 Million Buying Back STRC as It Struggles to Hit $100 Par Value

Strategy’s perpetual preferred stock, known as Stretch or STRC, continues trading below its $100 par value despite the company’s aggressive buyback campaign. The bitcoin treasury firm has now spent $635.2 million repurchasing shares, with STRC currently priced around $97.34. A $1 billion repurchase authorization has helped lift the stock from a low near $71 to its current level, with the most recent purchase totaling $151.8 million at an average price of $97.48.

Strategy Resumes Bitcoin Buying After Two-Month Pause

Alongside the STRC repurchases, Strategy made its first bitcoin purchase in two months, acquiring 4,603 BTC for roughly $369.7 million at around $80,000 per coin. This brings the company’s total holdings to 845,050 BTC, valued at approximately $65.9 billion.

Competing Preferred Stock Holds Its Value Better

Part of STRC’s difficulty appears to stem from competition with Strive’s perpetual preferred stock, SATA, which offers a higher 13% annualized dividend paid daily, compared to STRC’s 12% rate paid twice monthly. SATA has stayed close to its $100 par value for over a week, allowing Strive to sell additional shares through its at-the-market program. The funds raised helped Strive purchase 1,800 BTC over the past week.

The difference between the two companies extends to their common shares as well. Strive’s stock has climbed 60% since the start of the year, while Strategy’s shares have dropped 15% over the same period.