Strategy Opens the Door to Bitcoin Sales—Michael Saylor Explains Why It Makes Sense
Michael Saylor, Executive Chairman of Strategy Inc. (Nasdaq: MSTR), revealed in a July 27 X post that future repurchases of the company’s Series A Perpetual Stretch Preferred Stock (STRC) may be funded through either bitcoin sales or MSTR stock sales, depending on market conditions. STRC carries a $100 stated amount with a dividend rate evaluated monthly.
Bitcoin sales could become an attractive financing option when STRC trades sufficiently below $100, allowing the company to retire preferred shares at a discount. Saylor said the company aims to keep STRC trading near its $100 stated amount with high liquidity, low volatility, and sustainable independent demand.
During the week ending July 26, Strategy repurchased 288,930 STRC shares for approximately $25 million at an average price of $86.52 per share. Another $975 million remains available under the company’s preferred securities repurchase authorization. At the latest average purchase price, the company acquired each STRC share for $13.48 below its stated amount before accounting for future dividend savings.
Strategy President and CEO Phong Le explained, “At prices below $100 per share, STRC repurchases represent an attractive allocation of capital because they can reduce future preferred dividend requirements at a discount.” He added, “We intend to scale our purchases according to both price and liquidity—more at deeper discounts and less as the STRC trading price approaches $100 per share.”
Separately, Strategy increased its USD Reserve by $525 million through MSTR common-stock sales, raising the balance to $3.75 billion. The reserve covers approximately 25 months of expected preferred dividend payments and is restricted to preferred dividends and debt obligations. That leaves future STRC repurchases to be financed through other sources, including MSTR stock sales and, as Saylor outlined, bitcoin sales when market conditions justify them.
Rather than drawing from the USD Reserve, Strategy now has two principal funding channels for STRC repurchases: MSTR issuance and bitcoin sales when management believes the economics justify them. This flexibility allows the company to retire discounted preferred shares without tapping funds reserved for dividends and debt obligations.