Strategy repurchases 288,930 Stretch shares for $25M under new buyback program

Strategy, the company formerly known as MicroStrategy, just bought back 288,930 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) for $25 million. That works out to roughly $86.52 per share, a meaningful discount to the stock’s $100 par value.

The repurchase marks the first transaction under Strategy’s Digital Credit Securities Repurchase Program, which was announced on June 29, 2026, and authorizes up to $1 billion in aggregate purchases. STRC is being prioritized in the initial phase of that program.

Why Strategy is buying its own preferred stock at a discount

STRC was designed to trade near its $100 par value, but the market has other ideas, with shares hovering around $86.89 at recent prices. Strategy can retire $100 of face-value obligation for roughly $87 in cash.

STRC carries a variable dividend rate currently set at 12% annualized, paid out semi-monthly. But because shares trade below par, the effective yield for holders who buy at market prices clocks in around 13.81%.

The total notional outstanding of STRC exceeds $10.4 billion. Against that figure, a $25 million buyback is roughly 0.24% of the total.

The bigger picture: Bitcoin treasury meets capital engineering

Under executive chairman Michael Saylor, the company has systematically used debt issuances, equity raises, and now preferred stock to fund massive Bitcoin acquisitions.

In May 2026, Strategy completed a $1.5 billion debt repurchase that was partly funded through STRC and MSTR issuances earmarked for Bitcoin purchases.

The company changed its name from MicroStrategy to Strategy Inc in August 2025. Software revenue still exists somewhere in the financial statements, but the company’s identity is now inseparable from its Bitcoin holdings and its increasingly complex capital structure.

What this means for investors

The 13.81% effective yield reflects significant compensation demanded by investors for the risk of holding preferred equity in a company whose balance sheet is dominated by a notoriously volatile asset.

The spread between STRC’s market price and its $100 par value will serve as the market’s real-time verdict on how much risk investors see in Strategy’s Bitcoin-centric balance sheet.

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