Strategy repurchases $25M of STRC preferred stock, boosts USD reserve

Strategy Inc (Nasdaq: MSTR, STRC) announced it repurchased 288,930 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) for approximately $25.0 million, at an average price of approximately $86.52 per share. The transactions were conducted in open-market purchases between July 20 and July 26, 2026.

Approximately $975 million remains available under the company's Digital Credit Securities Repurchase Program, which was announced in June 2026.

The company stated it intends to be a regular purchaser of STRC while shares trade below their $100 stated amount, with the pace of repurchases expected to be greater at deeper discounts and to taper as the trading price approaches $100 per share.

Strategy also disclosed it added $525 million to its USD Reserve from proceeds of sales of its class A common stock (MSTR) under its at-the-market offering program, bringing the USD Reserve to $3.75 billion. The company said this level represents approximately 25 months of expected preferred stock dividend payments.

Under the company's board-approved USD Reserve Policy, the USD Reserve is not authorized to be used to fund STRC repurchases. Strategy said it expects to fund repurchases from other sources, which may include further MSTR stock sales or bitcoin sales.

Management said it will recommend to the board that Strategy maintain STRC's 12.00% annualized dividend rate until the stock has demonstrated sustained trading near $100 per share. Dividends remain subject to declaration by the board and are not guaranteed.

Phong Le, President and Chief Executive Officer, said: "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."

The repurchase program does not obligate Strategy to buy any minimum number or dollar amount of shares and may be modified, suspended, or discontinued at any time.

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