TLDR
- Strategy’s STRC closed above $94 after recovering more than 30% from its June low on continued buybacks.
- The company repurchased $106 million of STRC shares and expanded its U.S. dollar reserve to $4 billion.
- Strategy sold 5,226 BTC for $321 million to support dividends and strengthen liquidity management.
- The $4 billion reserve provides about 2.3 years of coverage for preferred stock dividend obligations.
- STRC continues trading below its $100 par value as Strategy targets further recovery through buybacks and dividends.
Strategy’s STRC preferred stock climbed above $94 after a sharp recovery from June lows, supported by share buybacks, a larger cash reserve, and continued dividend payments.
STRC Extends Recovery as Buybacks Continue
Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) rose above $94, marking its strongest level since mid-June. The preferred stock has recovered more than 30% from its June low after trading below $80 during the recent market weakness.
The recovery follows Strategy’s repurchase of $106 million worth of STRC shares over the past two weeks. The company previously approved a share repurchase program of up to $1 billion and still has most of that authorization available for future buybacks.
The buyback program aims to support STRC as it moves closer to its $100 stated value. Investors who purchased shares during the June decline have also benefited from the preferred stock’s dividend payments while the price recovered.
Cash Reserve and Bitcoin Sales Support Dividend Strategy
Strategy recently increased its U.S. dollar reserve to approximately $4 billion after adding another $250 million. The company estimates the reserve can cover more than two years of dividend payments across its preferred securities.
The company has maintained STRC’s annual dividend rate at 12%, with payments distributed twice each month. During its earnings call, Strategy said the reserve forms part of its capital management approach while supporting preferred shareholders.
Strategy also reduced its Bitcoin holdings through several transactions. The company sold 5,226 BTC for approximately $321 million, lowering its total holdings to about 842,137 BTC. Management stated that Bitcoin can be used to meet financial obligations rather than remaining an inactive treasury asset.
Michael Saylor also addressed the company’s Bitcoin strategy, saying,
“Strategy is a public company, not my wallet.” He added that “Our shared conviction in Bitcoin remains unchanged.”
Bitcoin Holdings Remain Central to Strategy
Despite the recent sales, Strategy remains the world’s largest corporate Bitcoin holder. The company continues to build its capital strategy around Bitcoin while maintaining liquidity through its growing cash reserve.
Bitcoin has stabilized above $60,000 after recent market volatility, providing additional support for STRC’s recovery. Strategy noted that following STRC’s initial public offering, the preferred stock previously required about 70 trading days to return to par value after trading below target levels.
Strategy creates Digital Credit. https://t.co/LQiBaRs1Ma
— Michael Saylor (@saylor) August 5, 2026
The company believes the current recovery could follow a similar pattern, although future market conditions will determine whether STRC returns to its $100 stated value.
