Key Insights:
- Michael Saylor’s Strategy repurchased $176 million of STRC stock last week.
- The company doubled its Digital Credit Securities Repurchase Program for STRC stock to $2 billion.
- David Lawrence said the STRC repurchases were accretive to common shareholders, with mNAV rising to 1.15x.
Strategy repurchased $176.3 million of STRC preferred stock last week while making no new Bitcoin purchases. The company also doubled its Digital Credit Securities Repurchase Program authorization to $2 billion.
The Sept. 8 filing left Strategy’s Bitcoin holdings unchanged at 845,050 BTC. The company instead deployed USD Cash toward STRC while the preferred shares remained below their $100 par value.
Strategy STRC Buyback Reaches $176.3 Million
In the latest SEC 8-K filing, Michael Saylor’s MicroStrategy disclosed that during last week, the company didn’t sell any MSTR shares through its at-the-market offering program. Furthermore, the company made no additional Bitcoin purchases between August 31 and September 7.
Rather, the company continues to focus on its STRC stock buyback program. Last week, the company repurchased 1.81 million STRC shares for approximately $176.3 million at an average price of $97.36, below the $100 par value.
At the same time, Strategy also increased the authorized size of its Digital Credit Securities Repurchase Program from $1 billion to $2 billion.
As of September 7, the company held approximately 845,050 BTC, acquired for about $63.73 billion, at an average cost of roughly $75,412 per Bitcoin. Moreover, Strategy’s USD Reserve and USD Cash balances stood at approximately $5.10 billion and $1.44 billion, respectively.
In their announcement, Strategy noted that STRC’s BTC Credit tightened to 53 bps, down 1 bp, based on a 10% BTC ARR, 40% BTC volatility, and a BTC price of $79,809.
Strategy Is the Biggest Purchaser of STRC Stock
During the Bitcoin price crash to $60,000 by the end of June, the STRC stock collapsed to $75 levels. There were major concerns about a liquidity crunch, as the company’s USD reserves were low and investors remained worried about its dividends.
Since then, the company has been diluting its MSTR holdings and directing its capital toward the largest-ever buyback of its preferred security, STRC. Now, Strategy has expanded its STRC buyback by another $1 billion.
Analyst Zaid said that Strategy accounted for roughly 22% of STRC’s trading volume last week. The management has used existing USD cash to fund the STRC repurchases. The recent repurchases have helped STRC regain some lost ground, and the stock is now trading at $97.75.
The move increased Strategy’s net leverage from 0% to 0.27%. September 8 also marks the 70th day since $STRC last traded at its $100 par value.
How STRC Regaining $100 Par Value Helps MSTR Stock?
According to market expert David Lawrence, the recent $176 million purchase of STRC shares increased the company’s USD reserve to $6.5 billion and was described as accretive to common shareholders, with mNAV rising to 1.15x.
The company also doubled its Digital Credit Securities Repurchase Program from $1 billion to $2 billion, providing additional capacity to repurchase STRC. Lawrence expects the expanded buyback program to support STRC’s return to its $100 par value. He noted that it could also potentially restart Strategy’s capital-allocation flywheel.
He also expects the company to avoid issuing MSTR shares as supply tightens, allowing Strategy to acquire more Bitcoin. The resulting increase in Bitcoin exposure could support higher BTC prices and, in turn, boost MSTR’s share price.
This article is for informational purposes only and should not be considered financial or investment advice. Bitcoin and equity markets remain volatile. Readers should conduct independent research before making investment decisions.
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