Strategy spends $635M buying back STRC as its price stays below $100

Strategy has spent $635.2 million buying back its perpetual preferred stock, STRC, but the stock continues to trade below its $100 par value. The latest repurchase totaled $151.8 million at an average price of $97.48 per share.

STRC, which offers a 12% annualized dividend paid semi-monthly, currently trades at around $97.34. The company’s repurchase program has helped lift STRC from a low of about $71 earlier this year.

Competition from Strive’s SATA

Strive’s perpetual preferred stock, SATA, has maintained its $100 par value, partly due to its higher 13% annualized dividend rate with daily payments. This has allowed Strive to issue additional shares to fund bitcoin purchases, including 1,800 BTC over the past week.

Stock performance and bitcoin holdings

Strategy’s common stock, MSTR, has fallen 15% year to date, while Strive’s common stock, ASST, has gained 60%. Strategy also recently bought 4,603 BTC for $369.7 million, bringing its total holdings to 845,050 BTC, valued at approximately $65.9 billion.

Key numbers

• STRC repurchase total: $635.2 million
• Latest STRC repurchase: $151.8 million at $97.48 average price
• STRC current price: $97.34
• STRC dividend rate: 12% annualized, paid semi-monthly
• SATA dividend rate: 13% annualized, paid daily
• Strategy’s BTC holdings: 845,050 BTC ($65.9 billion)
• MSTR year-to-date change: -15%
• ASST year-to-date change: +60%

Sources

• CoinDesk