Strategy Spends $635 Million on STRC Buybacks to Defend Par

Strategy, the world’s largest corporate holder of bitcoin, has increasingly relied on common and preferred stock to finance its cryptocurrency accumulation strategy. STRC is a perpetual preferred security with a $100-per-share liquidation preference. A sustained discount to that level could undermine investor confidence in the instrument and make future capital raising more expensive, giving the company an incentive to support its market price.

Strategy said on July 28, 2026, that it spent about $25 million repurchasing STRC shares trading below their liquidation preference and adopted a standing policy for additional purchases when the security falls under $100. The company said funding for the buyback is separate from its existing $3.75 billion reserve, meaning the purchases will not reduce funds earmarked to meet interest obligations and preferred-stock dividend payments.

Strategy, formerly known as MicroStrategy, has long financed bitcoin purchases by issuing common stock, convertible bonds and preferred shares including STRC. With a par value of $100, STRC is central to the company’s low-cost funding chain. When it trades at a discount, new issuance becomes less attractive and fundraising less efficient, weakening Strategy’s ability to keep accumulating bitcoin and support MSTR’s valuation.

Cantor Fitzgerald said on July 6, 2026, that restoring STRC to its $100 par value was Strategy’s top priority. STRC traded at $87.79 in early trading, while bitcoin was at about $61,800 and MSTR fell 3.4% to $97.34. Strategy announced the sale of $216 million in bitcoin to fund dividends, increased its cash dividend coverage from about 10 months to 18 months and may also conduct buybacks.