Strategy spends $635 million on STRC buybacks as Saylor races to restore $100 value

Strategy has spent $635.2 million buying back its STRC shares, which currently trade near $97, as part of an effort to restore the security to its $100 par value. The company, led by Michael Saylor, has roughly one week left to meet an informal September 8 target to close the gap.

The buyback program, initially expected to taper as STRC approached $100, has instead accelerated. Weekly spending has increased even as the discount to par has narrowed, defying the company’s original plan to reduce purchases as the price rose.

Accelerating buybacks and remaining funds

Strategy has deployed $635.2 million across several weeks, with the most recent week seeing $151.8 million spent at an average price of $97.48 per share. The company now has $364.8 million remaining under its $1 billion buyback authorization.

The buybacks aim to retire shares trading below $100, reducing the company’s dividend obligations tied to STRC, which pays a 12% annualized yield. However, the cost of closing the final gap to par has risen as the discount shrinks.

Funding the push to par

To finance the STRC buybacks and dividends, Strategy has relied on two main sources: sales of its MSTR common stock and its Bitcoin holdings. In late June and early August, the firm sold 6,916 Bitcoin to fund obligations. Last week, it sold 4.53 million MSTR shares for $602.8 million in net proceeds, allocating $151.8 million to STRC repurchases and $50.7 million to STRC dividends.

The company also resumed Bitcoin purchases, buying 4,603 Bitcoin for $369.7 million, bringing its total holdings to 845,050 BTC. This marks its first Bitcoin acquisition in about two months.

Reserves and next steps

Strategy has set aside a $5.1 billion reserve for preferred dividends and debt interest, supported by an additional $1.6 billion in flexible cash. It has also maintained STRC’s 12% dividend and barred new STRC issuance below $100.

The next test for STRC will be whether outside investor demand can sustain its price near $100 once Strategy reduces its own buyback activity. The initial July 2025 offering saw strong demand, allowing Strategy to expand the deal beyond its original $500 million target.

Sources

• CryptoSlate