Strategy’s STRC preferred stock has recovered nearly 30% from its late-June low as Bitcoin sales, share repurchases and a larger cash reserve restore demand for the company’s flagship income security.
STRC reached an intraday high of $94.20 on August 4 before closing at $92.53. The Nasdaq-listed preferred stock traded as low as $71.25 on June 26, leaving it almost 29% below its $100 stated amount during the deepest part of Strategy’s capital-market selloff.
The rebound has pushed STRC back toward the range targeted by its variable dividend mechanism, although the security remains below stated value.
Strategy Repurchases $81.2 Million Of STRC
Strategy repurchased 912,143 STRC shares for $81.2 million between July 27 and August 2. The transaction implies an average purchase price of about $89.02 per share, nearly $11 below the $100 stated amount.
Bitcoin sales funded $52.3 million of the repurchases, while $28.9 million came from MSTR common-stock issuance. Strategy retained $893.8 million under its preferred-securities repurchase authorization after completing the transaction.
The buyback followed a Digital Credit Capital Framework designed to support STRC through reserves, flexible dividends and discounted repurchases. Strategy plans to scale purchases based on STRC’s market price and available liquidity when the security trades below $100.
Strategy maintained STRC’s annual dividend rate at 12% and said management does not intend to recommend another rate change until the stock demonstrates sustained trading near its stated amount. At the August 4 closing price, the $12 annualized distribution represents an implied yield of approximately 13%, subject to future declarations and rate adjustments.
Bitcoin Sale And MSTR Issuance Support Capital Plan
Strategy sold 1,638 BTC for $104.7 million during the same week, using $52.4 million for preferred-stock dividends and the remaining proceeds for STRC repurchases.
The transaction reduced its Bitcoin holdings to 842,138 BTC, acquired for $63.51 billion at an average price of $75,419. The full sale sequence, including Strategy’s earlier 32 BTC and 3,588 BTC transactions, was detailed in yesterday’s report on its $323 million of 2026 Bitcoin sales.
Strategy also issued 3.01 million MSTR shares for $290.6 million. It directed $250 million to its USD reserve, raising the balance to $4 billion, while the remaining proceeds supported the STRC buyback and general cash balances.
The common-stock issuance increased the capital available to defend the preferred structure but added to dilution. Strategy’s basic share count reached approximately 387.6 million on August 2, up from 371.6 million at the end of June.
STRC Recovery Reopens Funding Route
STRC serves a different investor group from MSTR. It provides variable cash distributions without voting rights or direct ownership of Strategy’s Bitcoin, while MSTR retains the larger upside and downside exposure to changes in the company’s BTC holdings and capital structure.
MSTR closed at $97.65 on August 4, gaining 2.9% during the session as STRC continued its recovery. Strategy can issue additional STRC efficiently when the preferred stock trades near or above $100, while sustained discounts limit its usefulness as a funding source.
Strategy declared two STRC cash dividends of $0.50 per share, payable on August 31 and September 15 to eligible holders on the respective record dates.
