Strategy has sold 1,638 bitcoins for $104.7 million and raised an additional $290.6 million in MSTR shares between July 27 and August 2. The $395 million raised has been used to buy back 912,143 STRC shares at an average price of $89.02, as well as to pay dividends and build a $4 billion treasury reserve. The STRC share has a nominal value of $100 and currently trades at $94, after rising 6% over five sessions and over 30% since its June low.
Background
Strategy's buyback of STRC shares is seen as a way to reduce debt and preserve the company's ability to issue new shares in the future. The STRC share functions like a perpetual bond, with a fixed dividend and a reference value of $100.
Implications
The buyback is also a sign that Strategy is prioritizing the health of its balance sheet over its bitcoin purchases, which have been suspended for six weeks. This pause is the longest since 2024, and it remains to be seen when Strategy will resume its bitcoin buying spree.
