Strategy CEO Phong Le Buys $1M in STRC Stock, Vows to Hold Until Par Value

Strategy President and CEO Phong Le has made a personal investment of $1 million in the company’s STRC preferred stock, signaling confidence in its recovery to the $100 par value. Le announced on X, ‘I bought $1 million of $STRC today. Will hold it until it reaches par, likely longer.’

Following the announcement, STRC stock rebounded from its daily low, rising 1.46% to $89.88. The preferred stock had recently fallen below $83, reflecting market concerns about its role in Strategy’s Bitcoin accumulation strategy.

STRC’s trading price is critical to Strategy’s capital-raising model. When the stock trades above $100 par, the company can sell additional shares through its at-the-market offering to fund Bitcoin purchases. This funding source has been suspended due to the stock’s current low levels.

To address pressure on the preferred stock, Strategy has made adjustments, including changing dividend payments from monthly to semi-monthly, approved by both MSTR and STRC shareholders. The pressure intensified after Strategy’s only disclosed Bitcoin sale in late May, when the company sold 32 BTC for approximately $2.5 million to support STRC dividend obligations.

In a move to bolster balance sheet confidence, Strategy announced its U.S. dollar reserve has increased to $1.4 billion, up $300 million from previous levels. The reserve will maintain credit quality for its Digital Credit securities and support future dividend and debt payments. The company also sold 2.71 million MSTR shares last week, generating nearly $335.5 million.

Additionally, Michael Saylor confirmed a purchase of $35 million in 520 Bitcoin at an average price of $67,068 per BTC. Strategy now holds 847,363 Bitcoin in its reserve.

Source: https://coingape.com/breaking-strategy-ceo-reveals-buying-more-strc-stock-to-restore-100-par/