Strategy Buys Back $635M of STRC as Perpetual Preferred Shares Lag Par

Strategy’s STRC perpetual preferred stock remains below its $100 par value despite a $635.2 million buyback effort aimed at supporting the shares.

The Bitcoin-focused company has repurchased STRC under a $1 billion authorization, helping the stock recover from a low of roughly $71 to around $97.34. Its latest purchase was the largest so far, totaling $151.8 million at an average price of $97.48 per share.

Strategy has also restarted its Bitcoin purchases after a two-month pause. The company bought 4,603 BTC for $369.7 million last week, paying approximately $80,000 per Bitcoin. Its total holdings have since risen to 845,050 BTC, valued at about $65.9 billion.

Another challenge for STRC is competition from Strive’s SATA perpetual preferred shares. SATA offers a 13% annualized dividend with daily payments, compared with STRC’s 12% rate paid twice each month.

SATA has held around its $100 par value for more than a week, allowing Strive to continue raising capital through its at-the-market share program. The company has used some of those proceeds to purchase 1,800 BTC over the past week.

The performance gap is also apparent in the companies’ common shares. ASST has gained roughly 60% since the start of the year, while MSTR has declined about 15%.

Strategy’s repurchase program has lifted STRC substantially from its lows, but the preferred stock has yet to return to its $100 par value. Meanwhile, SATA’s higher dividend rate appears to be helping it maintain stronger price support around par.