Strategy Increases STRC Buyback Plan to $2 Billion

Strategy is ramping up its efforts to stabilize its STRC preferred stock. The company board recently approved doubling the total authorization for its Digital Credit Securities Repurchase Program from $1 billion to $2 billion. This move comes after the firm spent $176.3 million to buy back over 1.8 million STRC shares between August 31 and September 7.

These recent purchases were made at an average price of roughly $97 per share. This is a notable discount compared to the $100 par value the stock is designed to maintain. The company confirmed that these buybacks were funded entirely using USD cash reserves. No common MSTR shares were part of this repurchase activity.

Looking at the broader balance sheet, the company remains steady. Strategy currently holds 845,050 BTC at an average purchase price of $75,412 per coin. The firm also retains $5.1 billion in its dedicated USD reserve, which is earmarked for dividends and debt interest, alongside an additional $1.44 billion in general purpose cash.

Investors should keep an eye on how this increased authorization affects the market price of STRC. While the company is aggressively targeting its preferred stock, the original $1 billion buyback authorization for common MSTR stock remains entirely untouched. This strategic shift highlights the company focus on resolving the performance hurdles that STRC has faced in the current market climate.