Strategy has repurchased $950.8 million worth of STRC preferred stock over eight consecutive weeks since July 20, with the latest transaction of $139.3 million between September 8-13. According to the company's September 14 SEC filing, this brings the total to 9.96 million shares repurchased for approximately $950.8 million since the program began. The company's Bitcoin holdings have reached 845,050 BTC, valued at $65.83 billion following the recent purchase of 4,603 BTC on August 31st. The company now holds $6.4 billion in USD reserves, creating a substantial liquidity cushion for Michael Saylor's Bitcoin DAT operations. As reported by Bloomberg, the repurchases targeted the company's Variable Rate Series A Perpetual Stretch Preferred Stock, which were designed to trade near a $100 par value and carry a 12% dividend rate. The company has explicitly set a corporate objective for STRC to trade between $99-100, with management using dividend-rate decisions, repurchases, and liquidity management to support trading near the $100 stated amount.
The STRC preferred stock now carries a 57-basis-point credit risk, calculated using assumptions that Bitcoin will return 10% annually with 40% volatility and trading at $77,266. As reported by AMBCrypto, this measurement represents the credit risk or safety cushion behind the preferred stock. The repurchase is strengthening Strategy's balance sheet while reducing STRC obligations and maintaining substantial assets to support financial commitments. By repurchasing shares trading below the $100 stated value, the company retires expensive equity at a discount and reduces the future dividend burden on its balance sheet. At the current $97.07 closing price after reaching an intraday high above $99, each share retired removes approximately $12 of annual dividend obligation, providing a 12% return on capital before considering the discount to par value. The company currently pays a 12% annualized dividend on STRC, equivalent to $0.50 for each full semi-monthly period on $100 of stated value when the dividend is declared.
Strategy's evolution over the past several years has been a case study in corporate Bitcoin adoption, with the company pioneering the idea of using corporate treasury funds to buy Bitcoin at scale. In June 2026, the firm unveiled a Digital Credit Capital Framework that shifted focus away from aggressive Bitcoin purchases, directing resources towards bolstering USD reserves, increasing the STRC dividend rate to 12%, and authorizing significant amounts in buyback programs. The board recently expanded the Digital Credit Securities Repurchase Program, doubling its total authorization to $2 billion on September 8, including purchases already completed. As of September 14, approximately $1.05 billion of that authorization remains available for continued equity retirement. The company has now spent approximately $950.8 million on STRC repurchases since July, with $176.3 million in the previous week and $139.3 million in the current reporting period. Management has said it does not currently intend to recommend changing the 12% rate until STRC demonstrates sustained trading near $100, and the company's existing policy is similarly not to sell new STRC below its $100 stated amount.
STRC has demonstrated strong recovery momentum, with the security recovering from near $70 toward its $100 stated amount. As reported by Bloomberg, the shares reached an intraday high of $99.03 on September 14 before pulling back, closing the latest completed U.S. session on September 16 at $97.07 after trading between $97.01 and $97.95. The recovery followed a steep decline that had taken the preferred security to nearly $70. Strategy's board has declared $0.50 payments for the periods ending September 30 and October 15. The company's issuance policy ties STRC's price directly to its ability to use the preferred stock for new capital, with CEO Phong Le previously stating that the company intended to resume issuance when Stretch returned to par, saying "when Stretch gets back to par, we'll issue more." The policy can change, and management warns in SEC filings that repurchases and dividend policies may fail to keep the security near $100. Analysts have questioned how STRC will trade once company purchases decline, with Rajiv Sawhney of Wave Digital Assets arguing that "The price is the product," stating that STRC needs to stay near par to function efficiently as a funding instrument.
Strategy's substantial repurchase program has been funded through multiple sources, with MSTR common-stock sales providing approximately $765 million (80% of total repurchase spending since July 20), including money first placed into Strategy's cash pool before being used for STRC. According to Bloomberg, Bitcoin sales contributed roughly $161 million to the repurchase program. The Bitcoin-funded portion can be directly reconciled with Strategy's SEC disclosures - during July 27-August 2, the company sold 1,638 BTC for $104.73 million and allocated $52.3 million to STRC repurchases, while selling 1,690 BTC for $108.6 million at an average net price of $64,262 with all proceeds funding STRC repurchases. The company's USD cash position fell from $1.61 billion on August 30 to $1.30 billion by September 13, while the separate $1.05 billion remaining preferred repurchase authorization and $1 billion under the separate common stock program were funded from working capital rather than the dedicated USD Reserve. Both MSTR and STRC stocks showed positive investor sentiment, with BTC trading at $77,850.93 after a 1.4% increase in the last 24 hours, as reported by AMBCrypto.
