Strategy starts buying its own preferred below par

@Strategy has made its first move under a $1 billion preferred share repurchase program, buying back 288,930 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock ($STRC) for approximately $25 million at an average price of $86.52 per share between July 20 and July 26.

Buying Below Par, With Intent

The purchase, conducted entirely through open-market transactions, leaves roughly $975 million still available under the Digital Credit Securities Repurchase Program that the company's board authorized in June. Strategy made clear this is not a one-off. While $STRC trades below its $100 per share stated amount, Strategy intends to be a regular and disciplined purchaser of STRC, subject to market conditions, applicable law, available liquidity, and the company's capital-allocation priorities.

The pace of repurchases is designed to be dynamic. Strategy expects the pace of repurchases generally to be greater at deeper discounts and to taper as $STRC approaches a trading price of $100 per share. The long-term objective is for $STRC to trade consistently near $100 per share with high liquidity, low volatility, and healthy, sustainable independent demand. Management will also recommend to the board that Strategy maintain $STRC's 12.00% annualized dividend rate until the stock has demonstrated sustained, healthy trading near that level.

The $1 billion repurchase program covers STRC along with Strategy's other preferred instruments: STRF, STRD, and STRK, though the company currently expects $STRC to be the initial priority if management determines that repurchases are accretive and would strengthen the company's capital structure.

USD Reserve Hits All-Time High

Strategy also announced that it added $525 million to its USD Reserve from proceeds of sales of its Class A common stock (MSTR) under its at-the-market offering program, increasing the USD Reserve to an all-time high of $3.75 billion, currently equal to approximately 25 months of expected preferred stock dividend payments.

Crucially, that cash cushion is ring-fenced. Under the board-approved USD Reserve policy, the company may use the USD Reserve to pay preferred stock dividends and interest expenses as they become due, and may subsequently replenish the reserve through sales of BTC under the BTC Monetization Program or other capital markets activity. Buybacks are funded separately, drawing on proceeds from $MSTR equity sales and, where conditions allow, bitcoin monetization capacity.

As of July 26, 2026, the company held 843,775 BTC in its Bitcoin Reserve, with no change in its Bitcoin holdings. Strategy's approach signals a deliberate shift: using capital markets tools to stabilize its preferred securities while keeping its core bitcoin treasury intact.

Sources:
Strategy Initiates STRC Repurchases and Announces Ongoing Buyback Policy (Business Wire)
Strategy Announces Digital Credit Capital Framework (Strategy.com)
Strategy $1B Repurchase Program Authorization (SEC Filing)