Strategy (NASDAQ: MSTR) has sold 1,690 Bitcoin for $108.6 million and directed 100% of the proceeds toward repurchasing its Stretch (STRC) preferred shares, according to a Form 8-K filed with the SEC on Monday. The move underscores the company's ongoing effort to bring STRC back to its $100 par value, the price at which the preferred stock can be redeemed and on which dividends are calculated. Preferred shares trading persistently below par typically signal that investors are pricing in elevated risk around the issuer's ability to meet its obligations — a dynamic Strategy has been working to reverse through active repurchases.

The Bitcoin batch was sold at an average price of $64,262 each between August 3 and August 9, generating $108.6 million. Those funds were used to buy back 1,152,020 shares of STRC, Strategy's variable-rate Series A perpetual "Stretch" preferred stock. The buyback was conducted under the company's $1 billion Digital Credit Securities Repurchase Program, which was announced on June 29 as part of its broader Digital Credit Capital Framework. Approximately $785.2 million in repurchase capacity remains available under the program.

In a separate capital raise, Strategy sold 6,585,682 MSTR shares through its at-the-market (ATM) equity program, generating $653.1 million. The proceeds were allocated between the company's USD reserve and cash accounts at a ratio of approximately $650 million to $3.1 million. As a result, the USD reserve increased to $4.65 billion, up from $4 billion the prior week.

Strategy's official press release confirmed the details of both transactions.

STRC Approaches $100 Target

The multi-week buyback campaign is part of a broader initiative to restore STRC to its target trading level. As of this report, STRC traded at $95.55 in pre-market activity, according to Google Finance, a significant improvement from its July lows.

Chief Executive Phong Le stated during the company's second-quarter earnings call that the goal is for STRC "to trade over time at $99 to $100."

Michael Saylor said Monday that the latest repurchase round tightened what the company calls STRC's "BTC Credit" by 10 basis points, or one-tenth of a percentage point. Saylor also noted that the capital raise extended the company's "USD Duration" — a measure of how long the cash reserve can cover preferred dividends and interest obligations — by 143 days to 2.7 years.

Strategy maintains that the USD reserve is dedicated to meeting those obligations. The company also has $1 billion available under a separate MSTR common-stock repurchase program.

Largest Corporate Bitcoin Holder Unchanged

Despite the sale, Strategy's position as the largest corporate Bitcoin holder remains firmly intact. The company's current stash of 840,447 BTC is far ahead of Twenty One Capital's 43,514 BTC in second place. Since adopting Bitcoin as a primary treasury reserve asset in August 2020, Strategy has served as the most prominent corporate model for Bitcoin balance-sheet strategies, a positioning that makes any disposition — even one tied to preferred-stock capital management — a point of attention for market observers tracking institutional Bitcoin adoption.

The sale continues a strategic shift that began in late May, when Strategy sold 32 Bitcoin for approximately $2.5 million — its first Bitcoin disposal since December 2022. A capital framework unveiled in June authorized up to $1.25 billion in Bitcoin sales, of which the company has now used roughly $429 million. Strategy has not purchased any Bitcoin since June. With roughly $821 million in authorized Bitcoin sales remaining alongside the $785.2 million STRC repurchase capacity, the pace and funding mix of future buybacks will be a key variable for those monitoring both STRC's trajectory toward par and Strategy's net Bitcoin position.

Saylor has pushed back on the characterization of the company as a seller. In a July 31 post on X, he wrote that Strategy has "never had a 'never sell' policy" and expects "to remain a net buyer of Bitcoin over time."