Strategy’s $150 million-a-day STRC market has a hidden dependency on its own buybacks

Strategy's $1.45 billion preferred-share buyback program is supporting a substantial share of trading in one of its key Bitcoin financing instruments.According to a Keyrock research report, Strategy's repurchases accounted for more than 20% of weekly trading volume in its variable-rate preferred stock, STRC, during almost every week of September.The company's share reached about 28% the week of Sept. 8 before falling to just under 20% in early October.The findings raise questions about how much of STRC's market liquidity comes from independent investors and how trading conditions might change if Strategy reduces its purchases.That question is becoming increasingly relevant as the Michael Saylor-founded company approaches the limit of its repurchase authorization.Strategy had spent approximately $1.45 billion of its $2 billion authorization as of Oct. 4, leaving $547.2 million available. The program has helped support STRC as its shares recovered from the mid-$70s in June to approximately $99.50, approaching the security's $100 reference price.However, the repurchases are discretionary, and Strategy can modify, suspend, or terminate the program.For a company seeking to establish pre...