Strategy Skips Bitcoin Sales, Buys Back $132M of STRC Instead

That pushed Strategy’s cash reserve to $4.8 billion as of August 16. The company says the reserve now covers roughly 2.8 years of preferred-stock dividends and interest obligations.

Why Strategy Is Buying Back STRC

STRC has become a key part of Strategy’s new capital-management framework.

The company originally used preferred securities such as STRC as another way to raise capital while preserving exposure to Bitcoin. But Strategy has increasingly focused on supporting the trading price and credit profile of those securities.

In June, the company authorized up to $1 billion in repurchases of its preferred Digital Credit Securities, including STRC.

Following the latest buyback, Strategy still has approximately $653 million available under that program.

Read more: Is Michael Saylor Losing Faith in Bitcoin? Strategy Sells 3,588 BTC Worth $226M

The latest move is particularly notable because Strategy now has explicit authority to sell Bitcoin when necessary.

Its June Digital Credit Capital Framework introduced a BTC Monetization Program that allows the company to sell Bitcoin to replenish its USD Reserve and fund certain other obligations.

Strategy used that option earlier in August, selling 1,690 BTC for roughly $108.6 million and directing the proceeds toward STRC repurchases.

Strategy Still Holds 840,447 Bitcoin

Despite recent Bitcoin sales, Strategy remains by far the largest corporate holder of BTC.

Its 840,447 Bitcoin were acquired for approximately $63.36 billion, including fees and expenses, at an average purchase price of $75,385 per BTC.

Read more: Saylor’s Strategy Is Cracking — Industry Figures Say the Bitcoin Model Has Run Its Course

For now, Strategy appears to be balancing three competing priorities: protecting its enormous Bitcoin position, maintaining enough cash to meet preferred-stock and debt obligations, and supporting securities such as STRC when they trade below management’s desired levels.