Strategy Inc, the company formerly known as MicroStrategy, has pushed its USD cash reserves to $4 billion while simultaneously spending $81 million to repurchase shares of its own preferred stock, STRC.
The company also holds 842,138 BTC, acquired at an average cost of approximately $75,419 to $75,482 per coin.
The STRC buyback play
Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, mercifully shortened to STRC, is a preferred equity instrument that pays a 12% annual dividend distributed semi-monthly in cash.
The company announced its first round of STRC buybacks on July 27, 2026, revealing it had repurchased 288,930 shares for roughly $25 million between July 20 and 26. The average price came in at about $86.52 per share.
The total STRC repurchase figure now sits at $81 million, part of a larger $1 billion buyback program the company has authorized.
STRC has been trading below its par value. When a company buys back its own shares below par, it’s essentially getting a discount on eliminating future obligations. Every STRC share repurchased is one fewer share requiring that 12% annual dividend payment.
Since launching its preferred stock products beginning in early 2025, Strategy has paid out over $693 million in preferred distributions.
The Bitcoin mountain keeps growing
Strategy’s Bitcoin holdings now stand at 842,138 BTC, acquired at an average cost of approximately $75,419 to $75,482 per coin. The $4 billion in USD reserves has been bolstered primarily through common-stock transactions.
What this means for investors
For STRC holders specifically, the buyback creates a natural price floor. Knowing that Strategy is an active buyer in the open market at prices around $86.52 per share provides some downside protection alongside the 12% yield.
The risk that investors should keep an eye on is concentration. Strategy’s entire corporate thesis is essentially a leveraged bet on Bitcoin’s long-term appreciation, financed through equity instruments like STRC and common stock offerings. The company has paid out over $693 million in preferred distributions since launching its preferred stock program in early 2025.
The $1 billion buyback authorization signals management confidence in its liquidity position to commit significant capital to reducing its preferred stock footprint.