Strategy buys back nearly $1B in preferred stock STRC to stabilize price near par value

Strategy Inc., the company formerly known as MicroStrategy, has spent roughly $950 million buying back its own preferred stock since late July, successfully pushing the security from the mid-$70s back toward its $100 stated value. The preferred security in question, STRC (formally the Variable Rate Series A Perpetual Stretch Preferred Stock), trades on Nasdaq and was designed to hover near its $100 par value. When it slid into the $70-$75 range, Executive Chairman Michael Saylor and his team stepped in as the buyer of last resort. The buyback math Strategy initially authorized up to $1 billion in STRC repurchases on June 29. That cap has since doubled to $2 billion. As of mid-September, the company has repurchased approximately 9.96 million STRC shares. The total bill sits around $950 million, meaning they’ve already burned through nearly half of the expanded authorization in roughly two months. During one particularly active stretch ending August 30, Strategy scooped up 1.55 million shares for $151.8 million. The average price on that batch was $97.48, just a hair below par. That’s a meaningful improvement from the sub-$80 levels that triggered the campaign in the first place. STR...