Strategy repurchases $139M of STRC preferred shares, holds Bitcoin steady

Strategy Inc. spent $139.3 million buying back its own preferred shares over a five-day stretch in September, choosing to clean up its balance sheet rather than add to its already massive Bitcoin pile. The repurchases, which took place between September 8 and 13, targeted the company’s Variable Rate Series A Perpetual Stretch Preferred Stock, ticker STRC. Meanwhile, Strategy’s Bitcoin holdings stayed exactly where they were: 845,050 BTC, acquired at an average cost of roughly $75,412 per coin for a total investment of approximately $63.73 billion. The buyback math STRC shares were designed to trade near a $100 par value and carry a 12% dividend rate. By repurchasing shares trading below that $100 stated value, the company retires expensive equity at a discount and reduces the future dividend burden on its balance sheet. The buybacks are part of Strategy’s Digital Credit Securities Repurchase Program, which the board recently expanded. The program’s total authorization was doubled to $2 billion in early September. As of September 7, roughly $1.19 billion of that authorization remained available. Why the Bitcoin pause Strategy did briefly resume buying in late August, but the broader...