Home Strategy Skips Bitcoin Buy To Repurchase $176M Of STRC Shares

Strategy Skips Bitcoin Buy To Repurchase $176M Of STRC Shares

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Strategy Skips Bitcoin Buy To Repurchase $176M Of STRC Shares
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Strategy, the world’s largest corporate Bitcoin holder, has skipped its latest weekly Bitcoin purchase and instead spent $176.3 million buying back its preferred STRC shares. The company repurchased 1.8 million STRC shares between August 31 and September 7, according to a Tuesday filing with the US Securities and Exchange Commission.

Strategy also doubled the size of its authorized Digital Credit Securities Repurchase Program from $1 billion to $2 billion. With no new Bitcoin purchase during the period, the company’s holdings remain at 845,050 BTC, acquired for a total of $63.6 billion at an average price of $75,412 per Bitcoin.

The move comes just a week after Strategy made its first Bitcoin purchase since mid-June, spending about $370 million to add BTC to its treasury. This time, however, the company chose to use its cash for the STRC buyback rather than increase its Bitcoin holdings.

The decision comes as STRC continues to trade below its intended $100 par value. The preferred stock was trading at around $97.70, representing a discount of about 2.3%. This matters because STRC is one of Strategy’s key funding vehicles for its Bitcoin accumulation strategy.

When the shares trade below par, it becomes harder for the company to raise fresh capital by selling STRC. It could also increase pressure on Strategy to offer a higher dividend to attract investors.

Strategy Skips Bitcoin Buy To Repurchase $176M Of STRC Shares

Source: assets.contentstack.io

Strategy had already raised the annual dividend rate on STRC to 12% under a new capital framework announced on June 29. The framework also allows the company to sell Bitcoin, if necessary, to help fund dividend payments.

The latest STRC repurchase was funded with cash rather than the issuance of common shares. As a result, Strategy’s US dollar cash balance fell to approximately $1.438 billion.

Strategy’s decision to pause Bitcoin purchases while buying back STRC suggests that managing its preferred-stock financing has become an increasingly important part of its broader Bitcoin treasury strategy.

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Written by
Kapil Rajyaguru -

Kapil Rajyaguru is a news editor at 3.0 TV with over 15 years of professional writing experience and more than four years dedicated to the cryptoverse.

An engineer by education and a writer by passion, Kapil brings a rare mix of technical insight and storytelling finesse. A firm believer that cryptocurrencies, blockchain and AI are the building blocks of the future, he crafts in-depth news and analysis to educate, empower and prepare the masses for the next frontier of Web3.

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